EGA records 34% increase in its first-half adjusted net profit after Iran war fallout

Emirates Global Aluminium (EGA) has announced a significant 34% increase in its first-half adjusted net profit following the fallout from the Iran war. The UAE-based industrial giant's six-month adjusted net profit soared to Dh2.46 billion ($670 million) after excluding the impact of the Iranian attack on its Al TaWeelah plant in March. This impressive growth was driven by a 10% decline in revenue to Dh13.5 billion, attributed to reduced sales volumes in the aftermath of the Al Taweelah incident.

Despite the challenges, EGA's total aluminium sales dropped by a staggering 32% to 939,000 tonnes due to logistical constraints and the closure of the Strait of Hormuz. However, the company took proactive measures to maintain shipments by establishing alternative routes through ports outside the strait. EGA's CEO, Abdulnasser bin Kalban, expressed confidence in the robustness of the supply chain, stating that the company remains committed to delivering goods to its customers despite the obstacles.

The restoration of production at the Al Taweelah plant, one of the critical infrastructure sites struck by Iran, is progressing steadily. The company disclosed that basic utilities are being restored across the site, with natural gas and electricity availability expected to increase in line with the restart programme. The estimated capital expenditure required to restore production is projected to reach approximately $400 million, with the majority of the costs expected during 2026 and some during 2027.