Emirates Global Aluminium, one of the world's largest aluminum producers, said on Tuesday that its annual net profit for 2022 rose 34 percent to a record 7.4 billion dirhams ($2.01 billion) thanks to higher metal prices.
The Emirati company said that the average price achieved for aluminum on the London Stock Exchange (LON: LSEG) for metals amounted to $ 2,715 per ton.
Benchmark aluminum rose on the London Metal Exchange to its highest level in ten years in March last year, recording $ 3985 a ton, before falling to $ 2080 in September.
The CEO of the company, Abdel Nasser bin Kalban, said in a statement that the future prospects for aluminum are still affected by some pressures due to the link between the aluminum industry and the recovery of the global economy.
Zuhair Al-Rajaji, the company's chief financial officer, said in a call following the announcement of the financial results that the company expects global demand for aluminum to grow by 1-2 percent in 2023.
Al-Rajaji added that prices will be affected by several factors such as general economic conditions, including the state of the global economy after central banks began raising interest rates last year, demand from China after lifting strict restrictions related to the epidemic in early December and the war between Russia and Ukraine. He said demand is still good.
EGA is equally owned by Abu Dhabi's Mubadala Investment Company and Investment Corporation of Dubai.
Abdel Nasser bin Kalban said in the call that followed the announcement of the results that the decision to conduct an initial public offering of the company depends on the shareholders.
The company said that the total dividend distribution to shareholders for the year 2022 amounted to about 3.7 billion dirhams, which is the largest in its history.
The company recorded an impairment loss of AED 1.1 billion for mining assets and equipment at Guinea Alumina Corporation, an accounting measure that reflects the increased cost of capital and other market conditions in Guinea.
