Emirates Global Aluminium delivers strong results despite challenging global market conditions

UAE-based global aluminium business reached 2.4 million tonnes production capacity in 2014, generating AED 19.8bn of Revenue and AED 3.7bn of Net Income

United Arab Emirates, 28 April 2015: Emirates Global Aluminium (“EGA”), jointly owned by Mubadala Development Company (”Mubadala”) and the Investment Corporation of Dubai (“ICD”), concluded its first year of operations, as announced at its 2014 Annual General Meeting.

In 2014, EGA delivered strong financial and operational performance, following the successful completion of the merger of its assets, and completion of its flagship project, EMAL Phase II. On this occasion, Abdulla Kalban (EGA Managing Director & Chief Executive Officer) stated, “We are extremely pleased with EGA’s performance in its first year and the progress that has been made to integrate the businesses of DUBAL and EMAL. Through the year, the company has captured significant cost efficiencies and achieved economies of scale; and successfully delivered EMAL Phase II ahead of schedule, under budget and with an excellent safety record.”

“In 2014, we were able to bring our full portfolio of value-added products to our global customer base, which includes more than 350 customers in almost 70 countries, while supporting a fast-growing downstream sector in the UAE. We also feel proud to continue to participate actively in the development of UAE National talent, with more than 1,300 National employees.”

Financial Highlights

According to the financial results for FY 2014, EGA has achieved:

•          Sales revenues of AED 19.8bn, a ~30% increase compared to the combined sales of EMAL and DUBAL in 2013; and
•          Net income of AED 3.7bn, a ~75% increase compared to the combined sales of EMAL and DUBAL in 2013.

The results were driven in particular by the successful ramp-up of EMAL Phase II production and a continued focus on cost reduction initiatives.

Operational Highlights

EGA, among the leading primary aluminium producers in the world, reached 2.4 Mtpa of capacity in 2014. During the year, a number of successful operational milestones were reached:

•          EMAL Phase II expansion project in Al Taweelah ramped up to full production capacity, ahead of schedule, using UAE-developed DX+ Technology. 42 million man hours were worked without any lost time injury;
•          EGA successfully merged into a single entity, under one management team, providing direct employment to approximately 7,000 people in the UAE, of whom more than 1,300 are UAE Nationals (more than 38 per cent of staff in supervisory roles and 45 per cent of corporate staff are Nationals);
•          Sold over 250 thousand tons in the UAE, supporting downstream manufacturing industries, and covering close to 100% of local demand;
•          EGA completed feasibility studies for a 4.0 Mtpa alumina refinery to be built in two phases adjacent to EMAL in the Khalifa Industrial Zone of Abu Dhabi (“KIZAD”);
•          The Government of the Republic of Guinea ratified the revised project plan proposed by EGA subsidiary Guinea Alumina Corporation and the first phase involving the development of a bauxite export mine commenced.