Emirates Global Aluminium profits drop by 50 per cent

02 March 2016

Performance dampened by weak aluminium prices and Chinese slowdown

Emirates Global Aluminum (EGA) profits halved in 2015 due to weak prices and a Chinese slowdown.

EGA, which owns Emirates Aluminium (Emal) and Dubai Aluminium (Dubal), says it made a net profit of $517.7m in 2015, down 49 per cent from $1.1bn a year earlier. Owned by state owned investment vehicle Mubadala, EGA is one of the world’s five largest primary aluminum producers.

Chief executive Abdulla Kalban said in a statement, “Last year was challenging for the aluminium industry, largely due to global macro-economic uncertainty, growth slowdown in China, a stronger US dollar and falling oil prices”.

Last year, revenue fell to $5bn, from $5.39bn the previous year.

Norsk Hydro, a top global producer, said in December 2015 that China’s aluminium production is expected to be 2-2.5 million tonnes higher than the country’s consumption in 2016, resulting in a global oversupply of up to 1 million tonnes.

With supply greatly exceeding demand, the benchmark three-month aluminium price has fallen nearly 30 per cent in the past year to six-and-a-half year lows.

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