Emirates Global Aluminium (EGA), jointly owned by Mubadala Development Company (Mubadala) and the Investment Corporation of Dubai (ICD), has concluded its second year of operations.
EGA’s results were announced at its 2015 Annual General Meeting, held on Thursday 25 February 2016.
On this occasion, Abdulla Kalban (EGA Managing Director & Chief Executive Officer) stated, “I am proud of the company’s results in 2015. Last year was 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 our planning, a focus on our customers and strength in operations. I want to take this opportunity to thank our employees, suppliers and customers for their support, commitment and continued partnership.”
According to the financial results for FY 2015, EGA achieved:
• Sales revenues were AED 18.7bn in 2015, compared with AED 19.8bn in 2014, due to the lower market price for aluminium;
• Net income of AED 1.9bn in 2015 compared with AED 3.7bn in 2014; and
• The successful issuance of a AED 18bn conventional term loan facility and Islamic commodity murabaha facility to prepay existing facilities held by EGA’s subsidiary Emirates Aluminium (EMAL) and provide financial flexibility for the company to fully fund its growth plans.
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 optimisation of capital costs and operating efficiency.
Key business highlights during the year included:
• 2.4 Mt in sales of high quality aluminium to more than 250 customers around the world, a 4 per cent increase compared to 2014.
• Over 225 kt of aluminium sold in the UAE, supporting the continued growth of downstream manufacturing industries. Positive progress was made on the two new downstream plants (50 kt wire rod plant, and 50 kt extrusion plant) developed by EGA customers DUCAB and TALEX in KIZAD, with production expected in 2016.
• The signing of a landmark technology licensing agreement with Aluminium Bahrain BSC (“Alba”) relating to the installation of EGA’s DX+ Ultra Technology in Alba’s new production line, the first major licencing agreement of this kind signed by a UAE industrial company and a testament to the strength of home-grown technology.
• Construction ground-breaking for the new 2.0 Mtpa alumina refinery in Khalifa Industrial Zone Abu Dhabi (KIZAD). First alumina production is expected in 2018.
• Positive progress on the feasibility study for the bauxite export mine phase of the GAC project in the Republic of Guinea, including the development of enabling infrastructure such as a container terminal in Kamsar, the development of local SME and workforce capabilities, and the successful delivery of a number of community projects in areas such as education and healthcare.