The profits of Emirates Global Aluminum increased by 63%, reaching before deduction of interest, taxes, depreciation and amortization of 4.1 billion dirhams in 2020 compared to 2019, while revenues reached 18.7 billion dirhams, according to the financial results issued today by the company.
According to the Emirates News Agency, the profit margin for smelting operations before deducting interest, taxes, depreciation and amortization reached 23%, compared to 14% in 2019, which makes it among the best in the world for similar companies.
Cash generated from operating activities increased by 35% to 5.5 billion dirhams, compared to 4.1 billion dirhams in 2019.
Emirates Global Aluminum worked to enhance the flexibility of its aluminum product mix during the year 2020 in response to the changing market requirements due to the repercussions of the Covid 19 pandemic on the global manufacturing sector.
Throughout the year as a whole, Emirates Global Aluminum was able to maintain its position as the largest producer of high-quality aluminum in the world by volume, with sales of value-added products reaching 1.8 million tons, representing 72% of the total sales volume, and the company sold its value-added products to more than From 400 customers in more than 50 countries during 2020.
The value-added products attract higher prices than the standard prices compared to those achieved by standard aluminum, which should enable EGA to increase the value of its production of primary aluminum.
EGA sold 2.52 million tons of the metal in 2020 compared to 2.60 million tons in 2019. This decrease is partly due to the product mix, as the alloy materials are not added in the casting process of the standard product P1020.
The final domestic sales of the aluminum industry sector reached 252 thousand tons compared to 294 thousand tons in 2019, and the aluminum industry sector has grown around EGA to become one of the most important industries in the UAE.
EGA continued to focus on improving operational efficiency and improving working capital, which decreased by more than 1.4 billion dirhams in 2020, to generate additional funds for the company.
Abdul Nasser Bin Kalban, CEO of the company, said that Emirates Global Aluminum achieved a significant improvement in financial performance in 2020, which witnessed unprecedented challenges for decades on the global aluminum sector .. We were able to achieve this through enhancing product flexibility and continuous focus on Manageable costs and cash generation, and strong performance on new projects for the production of raw materials despite additional challenges left by the COVID-19 pandemic.
He added: The global aluminum market recovery that began in the second half of 2020 continues until 2021, as a result of the global economic recovery ...
