2024-03-05 09:25:39
Emirates Global Aluminum Company announced achieving competitive financial performance and unprecedented production rates across the value chain during the year 2023. The company reported that despite the decline witnessed in the global aluminum market from the record rates recorded in 2022, adjusted profits before deducting interest and taxes amounted to… Depreciation and amortization of Emirates Global Aluminum Company is 7.7 billion dirhams.
The company maintained the total dividend distributions to shareholders in 2023 at 3.7 billion dirhams, noting that they are similar to the record dividends for 2022.
In turn, revenues amounted to 29.5 billion dirhams due to the decline in standard prices for aluminum globally, which Emirates Global Aluminum Company compensated for by increasing the volume of production of bauxite ore, the price of which witnessed a global increase, compared to 34.6 billion dirhams for the year 2022. The cash generated from operational activities reached 7.9 billion dirhams, Compared to 12.7 billion dirhams for the year 2022.
For its part, the “Najah” Transformation Program, affiliated with Emirates Global Aluminium, achieved savings in the framework of cost and revenue improvements during 2023 amounting to 2.6 billion dirhams. Since its launch, the program has achieved EBITDA improvements of AED 8.8 billion.
Net profit
The company achieved a net profit of 3.4 billion dirhams, compared to 7.4 billion dirhams for the year 2022. While exports of bauxite, alumina, and molten metal recorded record numbers that the company had never reached before.
Bauxite exports from Guinea increased to 14.1 million wet metric tons, compared to exports of 14 million wet metric tons for the year 2022.
Al Taweelah alumina refinery continued to exceed its production capacity by producing 2.48 million tons of alumina in 2023, compared to 2.43 million tons for 2022, meeting 48% of the company’s total alumina requirements during the year.
Production and sales
According to company data, the production of Emirates Global Aluminum Company’s smelters in Al Taweelah and Jebel Ali reached 2.66 million tons of molten metal, compared to 2.65 million tons for the year 2022. The smelters achieved the highest average purity of the metal in their history. The company also produced 205,000 tons of value-added products used in the aviation and electronics sectors that require ultra-fine and high-purity metals.
Total sales of aluminum reached 2.75 million tons, compared to 2.72 million tons for the year 2022. The percentage of sales of value-added products reached 76%, and the company supplied them to 423 customers in 50 countries.
The company’s sales to local dealers in the Emirates increased to 293 tons, compared to 268 tons in 2022, thus reflecting the strength and durability of the UAE’s economy.
The average price of a ton of aluminum from Emirates Global Aluminum Company on the London Stock Exchange reached $2,264 during the year, compared to $2,715 per ton during 2022, because the global standard price for aluminum is closely linked to the conditions of the global economy.
Competitive results
The CEO of Emirates Global Aluminum, Abdul Nasser Bin Kalban, said: “Emirates Global Aluminum achieved competitive financial results in 2023 compared to its counterparts in the sector from major companies, and maintained record dividend distributions to shareholders, thanks to the continued focus on the highest standards in terms of safety.” employees, operational excellence, costs, and strong relationships with our customers around the world.”
He added: “Global aluminum prices fell below their rates in 2022 in light of the current economic conditions, yet they remained higher than the average historical rates recorded in the eight years before the spread of the (Covid-19) pandemic.”
He continued: “The future outlook for aluminum remains positive given the role of aluminum as a fundamental pillar in building more sustainable societies. It is expected that global demand for aluminum will witness significant growth over the coming decades, especially for low-carbon and recycled aluminum. For this reason, Emirates Global Aluminum seeks to take advantage of growth opportunities in this field and consolidate its leading position in the global aluminum industry sector.
Quantum leap
For his part, Acting Chief Financial Officer at Emirates Global Aluminium, Ziad Fares, said: “Over the past four years, the company has achieved a qualitative shift in its business, during which we achieved savings in cost and revenue improvements worth $2.4 billion. During the same period, we were able to reduce total debt by $3.3 billion and provide record dividends to our shareholders.”
He added: “The global aluminum sector is preparing for strong growth over the coming decades, during which it will be able to meet the market’s needs regarding the energy transition and improve the standard of living around the world. Emirates Global Aluminum is looking forward to benefiting from significant growth opportunities thanks to the strong budget that the company allocates to these opportunities in addition to its leading position in the sector.”
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