June 26, 2022

Dubai Week

Complete Dubai News World

5.5 billion dirhams net profit .. 735 million dirhams dividend to shareholders in 2021

5.5 billion dirhams net profit .. 735 million dirhams dividend to shareholders in 2021

Emirates Global Aluminum, the UAE’s largest industrial company outside the oil and gas sector, today announced record results in interest, tax, depreciation and depreciation (EBITDA) and net profit adjusted earnings for 2021.

Net profit

The adjusted revenue increase before interest, tax, depreciation and debt repayment reached 9.0 billion dirhams for 2021 compared to 4.1 billion dirhams for 2020, while net profit reached 5.5 billion. Dirhams compared to 445 million dirhams for 2020. 1140% increase.

Strong demand

The company pointed out that these historic results came as a result of the company’s strong global demand for aluminum in light of global economies’ recovery from the effects of the “Govit-19” epidemic, as well as strong operational performance. The company focuses on increasing production and sales of all products within the value chain by 2021 compared to what it has achieved in 2020, and improving performance in all aspects of its operational activities and across all sectors.

According to operational and financial results, revenue was 25.5 billion dirhams in 2021 compared to 18.7 billion dirhams in 2020, and sales of value-added products or “high-quality aluminum” increased to 84% of the company’s total sales. Sales, which stood at 72% in 2020, are approaching its historic record.

Debt reduction

By 2021, the company was committed to maintaining its position as the largest producer of “high-quality aluminum” and was able to significantly reduce its debt and improve the capital structure that allows it to distribute profits to shareholders. Providing financial flexibility for future business growth.

The company noted its success in reducing the amount of major corporate debt by 2.7 billion dirhams, bringing the total balance to 20.3 billion dirhams and repaying the Tawila Steel project loan of 1.6 billion in advance and in full. Alumina Corporation repaying scheduled fees for dirhams, and “Guinea Company” loan. Thus, Emirates Global Aluminum will repay its debt of 4.4 billion dirhams in 2021. The company’s net debt ratio was 2.4 times higher than its pre-adjusted return on interest, tax, depreciation and debt at the end of the year.

See also  Gold has risen more than 2% since the start of the Russian invasion of Ukraine

Dividend

The total profit distributed to the shareholders of Emirates Global Aluminum was 735 million dirhams by 2021, while JA Power & Water Co., which owns the high-capacity power plant in Jebel Ali. Bought for 1.6 billion dirhams from shareholders. December 2021.

EBITDA reached 35% (2020: 22%) margin, one of the highest among its peers in the industry.

Fixed results

Abdul Nasser bin Kalban, CEO of EGA, said: “These record results show that we are in the process of starting the company’s next phase of development, starting with bauxite mining operations and ending with enhanced corporate capital in primary aluminum production. Implementing a better dividend policy for structured target shareholders is a pioneering path to future business growth and carbon neutrality. “

He added, “In the short term, strong demand continued in the first quarter of 2022, and although we face some challenges at the level of logistics services like other suppliers around the world, we have adopted new methods to overcome them. Using fragmented exports.”

Bin Kalpan pointed out that the company continues to focus on improving the value of existing assets by improving operations, operating efficiently and improving the technologies of the Fourth Industrial Revolution, and opening new frontiers for the growth of our business in the future.

Domestic sales

According to the company, the company’s sales to local distributors in the UAE stood at 281,000 tonnes, up from 252,000 tonnes in 2020, which reflects the company’s growing contribution to the UAE economy in line with its targets of doubling its economic impact by 2040.

See also  Egypt's Orascom opens its first international headquarters in Dubai


Follow our latest local and sports news and the latest political and economic developments via Google News

Share

Print