Emirates Global Aluminium's first-half profit slides 66%
One of the world's largest aluminium producers, EGA posted net profit of 2 billion dirhams ($544.62 million) for the first six months of the year, down from 5.9 billion dirhams a year earlier.
Emirates Global Aluminium's (EGA) first-half net profit slumped by 66% as metal prices corrected after reaching record highs in 2022, it said on Thursday. One of the world's largest aluminium producers, EGA posted net profit of 2 billion dirhams ($544.62 million) for the first six months of the year, down from 5.9 billion dirhams a year earlier.
The United Arab Emirates company said that the average realised London Metal Exchange (LME) price for its aluminium was $2,359 a tonne in the first half, compared with $3,063 in the same period last year.
EGA's core earnings margin was 27%, continuing to lead industry peers, it said.
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"At EGA we aim to achieve performance that is competitive for our sector throughout the economic cycle," said Chief Executive Abdulnasser Bin Kalban.
"In the first half of 2023 that is what we did - delivering solid financial results even as market conditions moderated from the significant volatility of recent years."
Aluminium prices reached a record high of $4,073.5 on the LME in March last year as the global economy recovered from the pandemic, but they have dropped this year as China has stepped up production.
EGA, which is jointly owned by Abu Dhabi state investor Mubadala and Investment Corp of Dubai, was formed in 2013 through a merger of state-owned Dubai Aluminium and Abu Dhabi's Emirates Aluminium.
The company has smelters in Abu Dhabi and Dubai and a bauxite mine in Guinea.