Emirates Global Aluminium, the largest industrial company in the UAE outside oil and gas, has reported net income of $325 million for 2018, a decrease of 64 percent.
The company, the world’s largest premium aluminium producer, said the decrease compared to 2017 was mainly due to higher raw material prices and despite record production amid challenging market conditions.
Emirates Global Aluminium’s revenue increased to AED23.5 billion in 2018, driven by higher sales volumes, higher benchmark price and product premiums and an increase in value-added product sales by 161,000 tonnes to a record 2.3 million tonnes, it said in a statement.
Emirates Global Aluminium said its exposure to raw material market prices will be reduced significantly once its alumina refinery in Abu Dhabi and bauxite mining project in the Republic of Guinea reach full production.
Al Taweelah alumina refinery is expected to meet some 40 percent of Emirates Global Aluminium’s alumina needs once fully ramped-up while the Guinea Alumina Corporation bauxite mining project is expected to produce 12 million tonnes per year of the ore from which aluminium is derived.
Both projects are set to begin production this year. Emirates Global Aluminium said it achieved record cast metal production of 2.64 million tonnes in 2018, up from 2.60 million tonnes in 2017, adding that sales of value-added products were a record 87 per cent of total sales.
Value-added products, or ‘premium aluminium’, attract considerably higher premiums than those achieved by standard aluminium and enable Emirates Global Aluminium to maximise the value of its production.
Emirates Global Aluminium said just over 10 percent of its production was supplied to customers in the UAE, serving the needs of the UAE’s downstream fabrication sector.