Telco’s AGM to approve cash dividends of 40 fils per share for H2 of 2023
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Emirates Global Aluminium (EGA) said on Tuesday that its net profit jumped “a best-ever” 34 per cent to Dh7.4 billion in 2022 year-on-year, underpinned by record production across the value chain.
EGA, the world’s largest ‘premium aluminium’ producer and the biggest industrial company in the UAE outside oil and gas, said in a statement that its adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) for 2022 surged 37 per cent to a record Dh12.4 billion compared to Dh9 billion in the previous year.
Abdulnasser bin Kalban, chief executive officer of EGA, said the company’s best-ever results demonstrated its resilience and strength at every step of the value chain.
“I am confident that EGA will deliver another competitive performance in 2023 compared to peers in the sector.
“The immediate outlook for aluminium remains under some pressure due to its close correlation to the health of the global economy. More broadly, the prospects for EGA and our sector are very strong due to aluminium’s role in decarbonisation economy-wide. EGA will capitalise on this significant opportunity,” said Kalban.
In 2022, EGA reported a record revenue of Dh34.6 billion, up 36 per cent from Dh25.5 billion in 2021. Cash generated from operating activities of Dh12.7 billion rose 70 per cent from Dh7.5 billion in 2021. Adjusted EBITDA margin was 36 per cent, compared to 35 per cent in 2021, one of the highest amongst industry peers, the statement added.
In 2022, EGA continued deleveraging to strengthen its balance sheet. EGA’s net debt to adjusted EBITDA was 1.1x at year-end, compared to 2.4x at end 2021. The company declared total dividends of Dh3.7 billion consisting of an interim dividend of Dh 2.2 billion in July and a further dividend of Dh1.5 billion after the end of 2022. This makes dividends related to 2022 the largest in EGA’s history, said the statement.
Zouhir Regragui, chief financial officer of EGA, said the results show EGA’s industry-leading capability both to capitalise on market opportunity and to generate value from mining to metal during more challenging periods.
“This is a testament to the success of our multi-year transformation programme that has so far delivered some $1.7 billion in additional EBITDA over three years. In addition, over the past four years, we have improved our working capital and have released close to $1 billion previously trapped in the business,” said Regragui.
He said EGA’s record financial performance enabled it to further strengthen its balance sheet in preparation for future growth while providing excellent returns for shareholders.
“We also took a prudent view with the recognition of the impairment of our asset in Guinea in light of the increasing cost of capital.
“We expect global demand for aluminium to grow by between one and two per cent in 2023, and much more over the decades ahead in the transition to a more sustainable economy. The bulk of new demand will be in secondary and low-carbon primary aluminium, for which there will be a premium. We are growing our business in both these areas,” added Regragui.
EGA recognised an impairment loss of Dh1.1 billion for mining assets and related equipment at Guinea Alumina Corporation, a prudent accounting measure reflecting the increased cost of capital and other market conditions in Guinea.
— isacjohn@khaleejtimes.com
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