EGA stays top global premium aluminium’ producer
EGA maintained its position as the world's largest 'premium aluminium' producer by volume
Emirates Global Aluminium said on Thursday that despite global challenges in 2019 it maintained its position as the world’s largest ‘premium aluminium’ producer by volume, with sales of value-added products of 2.3 million tonnes or 87.4 per cent of total sales sold to more than 400 customers in over 50 countries.
The largest non-oil industrial company in the UAE reported adjusted earnings before interest, taxes, depreciation and amortisation (adjusted Ebitda) of Dh2.5 billion) for 2019.
In a statement, EGA said cash generated from operating activities reached Dh4.1 billion delivered through improved operational efficiency. “EGA continued to improve working capital, which was reduced by more than Dh1.5 billion in 2019 to generate additional cash.”
Abdulnasser bin Kalban, Chief Executive Officer of EGA, said 2019 was a challenging year for the global aluminium industry and EGA took strong action to reduce our costs, improve our operational efficiency, and maximise cash generation. “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 said.
“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,” said Kalban.
Lower benchmark aluminium prices led to a reduction in revenue to Dh 20.5 billion compared to Dh23.5 billion in 2018, partially offset by the higher volume of value-added products, the statement said.
EGA sold 2.60 million tonnes of cast metal in total in 2019 compared to 2.64 million tonnes in 2018, but the company gained market share in many key markets and customers. Local sales, to the downstream aluminium sector that has grown around EGA into one of the UAE’s most significant industries, were 294 thousand tonnes, an increase of seven per cent, the company said.
“EGA’s Al Taweelah alumina refinery began production in April 2019, and produced 1.1 million tonnes in 2019. EGA’s bauxite mining subsidiary, Guinea Alumina Corporation, began bauxite exports in August 2019, with total bauxite ore mined of 1.7 million tonnes in 2019,” the statement said.
The company also recorded its highest-ever rate of Emiratisation, with some 39.8 per cent of in-focus roles at EGA held by UAE nationals. “More than 1,100 UAE nationals work at EGA in total, and some 840 of these employees are under the age of 35. Some 17 per cent of supervisory roles at EGA are held by women,” it said. — firstname.lastname@example.org
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