Abdulnasser Bin Kalban, Chief Executive Officer of Emirates Global Aluminium: “In 2023, EGA again delivered strong performance in what we control – the safety of our people, operational excellence, our costs, and our long-term commercial relationships with our global customers. This enabled us to continue to deliver competitive financial results compared to our global peers, and record-equalling dividends for our shareholders.”
Financial highlights of 2023
- Revenue of AED 29.5 billion ($8.0 billion) for 2023 compared to AED 34.6 billion ($9.4 billion) for 2022, driven by lower global benchmark prices for aluminium, offset by EGA with increased production and sales volume.
- Adjusted EBITDA of AED 7.7 billion ($2.1 billion), compared to AED 12.4 billion ($3.4 billion) in 2022, with decline due to global aluminium market offset by EGA with better operational efficiency and cost discipline.
- Net profit of AED 3.4 billion ($937 million), compared to AED 7.4 billion ($2.0 billion) in 2022.
- Cash generated from operating activities of AED 7.9 billion ($2.2 billion), compared to AED 12.7 billion ($3.4 billion) in 2022.
- Aluminium segment EBITDA margin of 25 per cent, compared to 35 per cent in 2022, leading major industry peers.
- EGA’s net debt to adjusted EBITDA was 1.8x at year-end 2023. Total debt stood at AED 16.6 billion ($4.5 billion) at the end of 2023, reduced from AED 19.7 billion ($5.4 billion) at the end of 2022. During 2023, EGA pre-paid $800 million of corporate debt in addition to scheduled repayments of debt at Guinea Alumina Corporation.
- EGA’s Najah transformation programme delivered AED 2.6 billion ($696 million) in cost and revenue improvements during 2023.
- Total dividends to shareholders maintained at AED 3.7 billion ($1 billion), equal to 2022 dividends as largest in EGA’s history.
Operational highlights of 2023
- Amongst the best safety performance in EGA’s history, with lowest-ever Total Recordable Injury Frequency Rate (a measure of all incidents including those not requiring time of work) of 1.29 per million hours worked. There was one Lost Time Injury at EGA during 2023, which was fully-recoverable.\
- Record sales of cast metal of 2.75 million tonnes (2022: 2.72 million tonnes). 76 per cent of EGA’s metal sales was value-added products (78 per cent in 2022).
- Sales to local UAE customers of 293 thousand tonnes of cast metal (2022: 268 thousand tonnes).
- Record production of hot metal of 2.66 million tonnes (2022: 2.65 million tonnes).
- Record production of alumina of 2.48 million tonnes (2022: 2.43 million tonnes). EGA’s Al Taweelah alumina refinery met 48 per cent of EGA’s alumina needs in 2023.
- Record production of CelestiAL solar aluminium of 66 thousand tonnes (2022: 57 thousand tonnes).
- Record exports of bauxite from Guinea of 14.1 million wet metric tonnes (2022: 14 million wet metric tonnes).
- During 2023, EGA’s Board approved the construction of the UAE’s largest aluminium recycling plant in Al Taweelah.
United Arab Emirates, 5 March 2024: Emirates Global Aluminium, the biggest industrial company in the United Arab Emirates outside oil and gas, today reported competitive financial results for 2023, with production records at every step of the company’s value chain.
Despite the global aluminium market retreating from the record highs of 2022, EGA’s adjusted Earnings Before Interest, Tax, Depreciation and Amortisation (adjusted EBITDA) for 2023 were AED 7.7 billion ($2.1 billion).
EGA maintained its total dividend pay out to shareholders at AED 3.7 billion ($1 billion) for 2023, equal to 2022’s record dividends.
EGA’s revenue was AED 29.5 billion ($8.0 billion) on lower global benchmark aluminium prices offset by increased production and higher global bauxite prices. This compared to AED 34.6 billion ($9.4 billion) in 2022. Cash generated from operating activities was AED 7.9 billion ($2.2 billion), compared to AED 12.7 billion ($3.4 billion) in the previous year.
EGA’s Najah transformation programme (‘Najah’ is an Arabic word meaning ‘success’), delivered AED 2.6 billion ($696 million) in recuring cost and revenue improvements during 2023. Since the programme’s launch in 2020, Najah has delivered AED 8.8 billion ($2.4 billion) in EBITDA improvements.
EGA’s smelting segment adjusted EBITDA margin was 25 per cent (2022: 35 per cent), leading major industry peers.
EGA’s net profit was AED 3.4 billion ($937 million), compared to AED 7.4 billion ($2.0 billion) in 2022.
EGA’s exports of bauxite and production of alumina and hot metal were all the highest-ever.
Bauxite exports from the Republic of Guinea increased to 14.1 million wet metric tonnes, from 14 million tonnes in 2022. Some 1.2 million tonnes of bauxite was supplied to EGA in the UAE, with the balance sold to external customers making EGA one of the world’s largest merchant bauxite suppliers.
Al Taweelah alumina refinery continued to creep production beyond its nameplate capacity, with 2.48 million tonnes of alumina produced in 2023 (2022: 2.43 million tonnes). Al Taweelah alumina refinery met 48 per cent of EGA’s total alumina needs in the year.
EGA’s smelters at Al Taweelah and Jebel Ali produced 2.66 million tonnes of hot metal, compared to 2.65 million tonnes in 2022. Average metal purity was the highest ever. EGA produced 205 thousand tonnes of super high purity and high purity metal during the year, high value products required for industries including aviation and electronics.
EGA’s total metal sales were a record 2.75 million tonnes (2022: 2.72 million tonnes). 76 per cent of EGA’s metal sales was value-added products (78 per cent in 2022). EGA supplied some 423 customers in over 50 countries.
EGA metal sales included 293 thousand tonnes supplied to local customers in the UAE, up from 268 thousand tonnes in 2022 and reflecting the relative strength of the UAE economy.
The average realised London Metal Exchange price for EGA’s metal was $2,264 per tonne, compared to $2,715 per tonne in 2022. The global aluminium benchmark price is closely correlated to the health of the global economy.
Abdulnasser Bin Kalban, Chief Executive Officer of Emirates Global Aluminium, said: “In 2023, EGA again delivered strong performance in what we control – the safety of our people, operational excellence, our costs, and our long-term commercial relationships with our global customers. This enabled us to continue to deliver competitive financial results compared to our global peers, and record-equalling dividends for our shareholders.
“Global aluminium prices were lower than in 2022, amid a less robust economy. However, prices remained higher than historic annual averages for the eight years before the pandemic.
“We believe the outlook for aluminium in the long term is very positive, because our metal is an essential material for the development of a more sustainable society. Global aluminium demand is expected to grow significantly over the coming decades, particularly for low carbon and recycled metal. EGA is well set to capitalise on these growth opportunities and further strengthen our position in the global aluminium industry.”
Ziad Fares, Acting Chief Financial Officer of Emirates Global Aluminium, said: “Over the past four years we have transformed our business, delivering $2.4 billion in cost and revenue improvements. Over the same period, we have reduced our total debt burden by $3.3 billion while delivering healthy dividends to our shareholders.
“The global aluminium industry is now poised several decades of growth, helping the world meet the needs of the energy transition while improving global living standards. With our healthy balance sheet, EGA is in a leading position to capture an ambitious share of this growth.”
During 2023, EGA prepaid AED 2.9 billion ($800 million) of corporate debt in addition to scheduled repayments at Guinea Alumina Corporation. Total debt stood at AED 16.6 billion ($4.5 billion) at the end of 2023, a net debt to adjusted EBITDA ratio of 1.8 times and compared to AED 19.7 billion ($5.4 billion at the end of 2022.
EGA produced 66 thousand tonnes of CelestiAL solar aluminium during 2023 (2022: 57 thousand). BMW Group remained the largest customer for this low carbon metal. During 2023, almost all the CelestiAL supplied to BMW Group was CelestiAL-R – solar aluminium further sweetened with recycled metal.
During 2023, EGA’s Board approved the construction of the UAE’s largest aluminium recycling facility in Al Taweelah. The 170 thousand tonnes per year facility is expected to be built within three years, and will supply recycled metal under the product name RevivAL.
EGA’s Total Recordable Injury Frequency Rate (a broad measure of safety which includes minor incidents that do not require time off work) was the lowest-ever at 1.29 per million hours worked. There was one Lost Time Injury at EGA during 2023, and the employee fully recovered. EGA’s safety performance is significantly better than global industry benchmarks.
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