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Emirates Global Aluminium sales soar amid challenging year

Abu Dhabi - Dubal owned by Dubai Investment Corporation and Emirates Aluminium owned by Mubadala Development Company merged their operations to benefit from economy of scale.

Emirates Global Aluminium, which is one of the top five global smelters in its second year of operations achieved growth in sales.
The aluminium giant was emerged two years ago, when Dubal owned by Dubai Investment Corporation and Emirates Aluminium owned by Mubadala Development Company merged their operations to benefit from economy of scale.
Announcing the financial and production numbers at the second annual general meeting on Thursday, Abdulla Kalban managing director and chief executive officer of EGA termed the last year as "challenging" for the aluminium industry, largely due to global macro-economic uncertainty, growth slowdown in China, a stronger US dollar and falling oil prices.
In this climate, EGA's strong results reflect the high quality of planning, a focus on customers and strength in operations, he said.
The sales revenues lowered slightly to Dh18.7 billion in 2015 from Dh19.8 billion in 2014, due to the lower market prices.
The net income dropped to Dh1.9 billion in 2015 from Dh3.7 billion in a year ago period.
However, sales soar four per cent to reach 2.4 million tonnes to more than 250 customers around the world.
Over 225,000 metric tonnes of aluminium was sold in the country that boosted manufacturing in the downstream industry.
"The successful issuance of a Dh18 billion conventional term loan facility and Islamic commodity Murabaha facility to prepay existing facilities held by EGA's subsidiary Emirates Aluminium and provide financial flexibility for the company to fully fund its growth plans," the Company said in a statement.
To achieve these results, EGA launched several initiatives in 2015 to protect and enhance its low-cost advantage, focusing on productivity improvement capitalising on opportunities from the merger of Emal and Dubal, as well as continued optimization of capital costs and operating efficiency, the statement said.
haseeb@khaleejtimes.com