The CEO of UAE’s Emirates Global Aluminium (EGA), Abdulnasser Bin Kalban has strongly hinted that an IPO is being considered. The leading aluminium producer in the world has returned to profit in the first half of 2021, reporting a profit of 1.74 billion dirhams ($473.75 million)

The company said its H1 profits were the strongest ever, thanks to global demand and higher prices for the metal triggered by an economic recovery across the world from the COVID-19 crisis. EGA had reported a loss of AED 208 million in H1 in 2020.

“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 UAE’s largest ever,” Bin Kalban said.

Its revenue was up to AED 10.8 billion in H1 2021, compared to AED 9.7 billion in the first half of 2020.

Bin Kalban said production was actually lower in the first half of 2021 as upgrading works to facilities were under way, as well as ‘debottlenecking’ to facilitate metal output growth.

“Like many other industrial companies, we were affected by global logistics challenges including container availability, and we are adopting different approaches in response such as break-bulk shipping,” he said.

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Abdulnasser Bin Kalban, CEO of Emirates Global Aluminium. Image courtesy EGA.

Reuters reported EGA’s plans for an IPO last week citing three sources familiar with the matter. EGA is examining proposals from banks, which pitched for advisory roles, the report said.

In its statement, the company cited highlights for the first half of 2021 including 1.18 million tonnes of metal produced, supplying 442 customers in 57 countries. Of the metal sold, 140,000 tonnes were sold in the UAE, an increase of 13,000 tonnes on the first half of 2020.

EGA also announce in January that it was to produce aluminium using solar power in partnership with Dubai Water and Electricity Authority (DEWA).

(Writing by Imogen Lillywhite; editing by Seban Scaria)

imogen.lillywhite@refinitiv.com

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