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Thu 26 Mar 2020 02:14 PM

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Emirates Global Aluminium profits fall amid lower finished metals prices

EGA CEO Abdulnasser bin Kalban said that 2019 was "challenging" due to market conditions

Emirates Global Aluminium profits fall amid lower finished metals prices

Emirates Global Aluminium’s earnings fell to $693 million in 2019 from $1.2 billion the year before amid lower prices for finished metals and proportionally higher prices for raw materials in the first half of the year, the company has announced.

In a statement, EGA said that revenues fell 12 percent from $6.4 billion in 2018 to $5.6 billion in 2019, driven by lower world prices for aluminium but partially offset by a higher volume of value-added products.

The statement added that cash generated from operating activities stood at $1.1 billion for the year, compared to $1.5 billion in 2018.

Additionally, the statement said that EGA’s value-added product sales of 2.3 million tonnes amounted to 87.4 percent of total sales, helping it maintain its position as the world’s largest ‘premium aluminium’ producer by volume.

“2019 was a challenging year for the global aluminium industry and we took strong action at EGA to reduce our costs, improve our operational efficiency, and maximise cash generation,” said EGA CEO Abdulnasser Bin Kalban said.

“EGA’s key strengths, including our highly-efficient smelting technology and market leadership in value-added products, enabling us to achieve competitive EBITDA margins in the global aluminium industry,” he added.

Additionally, Bin Kalban said that “market conditions last year further validated our strategy of controlling our own supply of bauxite and alumina and reducing our exposure to volatile raw materials prices.”

“During 2019 we completed construction and made excellent production ramp-up progress at both our strategic upstream growth projects,” he added.

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