DUBAI: Emirates Global Aluminium, one of the world’s largest aluminum 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.
The benchmark price for aluminum 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 aluminum prices for a number of reasons, on the short term, the recovery post-COVID-19 is supporting the demand for aluminum prices. But looking at the longer term, there’s a stronger push for decarbonization and aluminum 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.
UAE’s Emirates Global Aluminium swings to profit in first half
UAE’s Emirates Global Aluminium swings to profit in first half
Closing Bell: Saudi main index closes in red at 10,847
RIYADH: Saudi Arabia’s Tadawul All Share Index dipped on Wednesday, losing 58.51 points, or 0.54 percent, to close at 10,847.93.
The total trading turnover of the benchmark index was SR3.78 billion ($1 billion), as 73 of the listed stocks advanced, while 187 retreated.
The MSCI Tadawul Index decreased, down 7.09 points or 0.48 percent, to close at 1,472.98.
The Kingdom’s parallel market Nomu lost 178.75 points, or 0.77 percent, to close at 22,916.83. This comes as 30 of the listed stocks advanced, while 37 retreated.
The best-performing stock was the Power and Water Utility Co. for Jubail and Yanbu, with its share price surging by 8.47 percent to SR31.24.
Other top performers included Saudi Paper Manufacturing Co., which saw its share price rise by 6.13 percent to SR53.70, and Jamjoom Pharmaceuticals Factory Co., which saw a 4.58 percent increase to SR137.
On the downside, the worst performer of the day was CHUBB Arabia Cooperative Insurance Co., whose share price fell by 5.14 percent to SR17.53.
Saudi Kayan Petrochemical Co. and Arabian Internet and Communications Services Co. also saw declines, with their shares dropping by 4.87 percent and 4.43 percent to SR4.88 and SR181.40, respectively.
On the announcement front, Saudi Kayan Petrochemical Co. announced its annual financial results for 2025, with sales dropping 3.06 percent year-on-year to SR8.45 billion. The company also recorded a net loss of SR893.86 million.
In a Tadawul statement, the company said the net loss and decline in annual sales were driven by a drop in average selling prices, despite higher sales volumes.
