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 worlds 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 Chinas aluminium production is expected to be 2-2.5 million tonnes higher than the countrys 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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