Emirates Global Aluminium, one of the world's largest aluminium producers, returned to profit in the first half of 2021 on the back of higher prices for its metal, as global economies recover from the coronavirus crisis.
The company, which is preparing for a potential initial public offering, reported a profit of 1.74 billion dirhams ($473.75 million). EGA reported a loss of 208 million dirhams in the year earlier period. EGA said that the first-half results were the strongest ever.
"I am confident that our performance will continue to improve, making EGA increasingly attractive should our shareholders decide to proceed with an initial public offering, which would be one of the United Arab Emirates’ largest ever," Chief Executive Abdulnasser Bin Kalban said in a statement.
Revenue for the six months ended June 30 stood at 10.8 billion dirhams, compared with 9 billion last year, reported Reuters.
The benchmark price for aluminium on the London Metal Exchange averaged $2,245 per ton in the first half of the year, compared with $1,592 per ton in the same period, a year earlier.
"We are quite bullish for aluminium prices for a number of reasons, on the short term, the recovery post-COVID-19 is supporting the demand for aluminium prices. But looking at the longer term, there's a stronger push for decarbonization and aluminium is a metal that is well placed to make economies more sustainable," said Zouhir Regragui, chief financial officer at EGA in an interview.
EGA, which is jointly owned by Abu Dhabi state investor Mubadala and Investment Corp of Dubai, has asked banks to pitch for roles in a potential public share sale, which bankers say could take place next year.
The company has smelters in Abu Dhabi and Dubai and a bauxite mine in Guinea. It was formed in 2013 through a merger of state-owned Dubai Aluminium and Abu Dhabi's Emirates Aluminium.
