EGA announces record revenue of $9.4 billion for 2022, along with a sales hike to 2.72 million tonnes

Emirates Global Aluminium (EGA) has published its financial and operational results for 2022, reporting a record revenue of AED 34.6 billion ($9.4 billion), up by 36 per cent from AED 25.5 billion ($6.9 billion) in 2021. Net profit also grew significantly to stand the highest ever at AED 7.4 billion ($2.0 billion), up 34 per cent AED 5.5 billion ($1.5 billion) in 2021.

Adjusted EBITDA mounted to AED 12.4 billion ($3.4 billion) - 37 per cent higher than AED 9.0 billion ($2.5 billion) in 2021, backed on the average realized LME price of $2,715 per tonne.

Cash generated from operating activities was AED 12.7 billion ($3.4 billion), reflecting a 70 per cent surge from AED 7.5 billion ($2.0 billion) a year ago. 

The company’s revenue grew last year in line with a record sales volume of 2.72 million tonnes compared to 2.54 million tonnes in 2021. 78 per cent of EGA’s aluminium sales were value-added products.

EGA also delivered record production at every step of the aluminium value chain, from mining to cast metal. Hot metal output was 2.65 million tonnes versus 2.50 million tonnes in 2021. During 2022, EGA surpassed 40 million tonnes of hot metal produced since start-up in 1979.

EGA’s alumina production also stood higher at 2.43 million tonnes than 2.3 million tonnes in 2021. Al Taweelah refinery met 47 per cent of EGA’s alumina needs in 2022 and contributed AED 919 million ($250 million) to the adjusted EBITDA.

The aluminium conglomerate also posted record bauxite exports of 14 million wet metric tonnes from Guinea, compared to 12 million wet metric tonnes in 2021. Guinea Alumina Corporation contributed AED 507 million ($138 million) to EGA’s adjusted EBITDA in 2022.

Abdulnasser Bin Kalban, Chief Executive Officer of EGA, said: “At EGA, we delivered our best-ever results by focusing throughout the year on what we control – the safety of our people, operational excellence, our costs, and our commercial relationships with our long-term global customers. Our performance demonstrated our resilience and strength at every step of the value chain.”

He also said, “The immediate outlook for aluminium remains under some pressure due to its close correlation to the health of the global economy. More broadly, the prospects for EGA and our sector are very strong due to aluminium’s role in decarbonisation economy-wide. EGA will capitalise on this significant opportunity.”

Zouhir Regragui, Chief Financial Officer of EGA, said: “Our record financial performance enabled us to further strengthen our balance sheet in preparation for future growth while providing excellent returns for our shareholders. We also took a prudent view with the recognition of the impairment of our asset in Guinea in light of the increasing cost of capital.”