Emirates Global Aluminium (EGA) released its 2024 performance report on Wednesday. The annual net profit decreased by 23.5% year-on-year to 2.6 billion dirhams (it was 3.4 billion dirhams in 2023), mainly due to the impairment expenses caused by the suspension of export operations in Guinea and the levy of a 9% corporate income tax in the United Arab Emirates.
Due to the tense global trade situation, the volatility of aluminum prices is expected to continue this year. On March 12, the United States imposed a 25% tariff on imported steel and aluminum products, and the United States is a major market for suppliers in the United Arab Emirates. In October 2024, the bauxite exports of EGA’s subsidiary Guinea Alumina Corporation (GAC) were suspended by the customs. The bauxite export volume decreased from 14.1 million wet metric tons in 2023 to 10.8 million wet metric tons in 2024. EGA made an impairment of 1.8 billion dirhams on the carrying value of GAC at the end of the year.
The CEO of EGA said that they are seeking solutions with the government to resume bauxite mining and exports, and at the same time, they will ensure the supply of raw materials for the alumina refining and smelting operations.
However, EGA’s adjusted core earnings increased from 7.7 billion dirhams in 2023 to 9.2 billion dirhams, mainly due to the increase in the prices of aluminum and bauxite and the record-high production of alumina and aluminum, but this was partially offset by the increase in alumina prices and the decrease in bauxite production.
Post time: Mar-20-2025