EGA’s nine-month profit and revenue fall as Iran war disrupts aluminium sales

Emirates Global Aluminium revealed a 9% decline in its nine-month adjusted net profit, attributed to losses from an Iranian attack on Al Taweelah plant and disrupted exports. The company's adjusted net profit for the period ending September stood at $744 million, down from $817 million in the same period last year. Net profit for the period was $547 million, after accounting for a $197 million impact linked to the war-related shutdown at Al Taweelah in March. This led to an emergency shutdown of all Al Taweelah plants at Kizad, Abu Dhabi.

Revenue for the nine-month period also fell by 16% annually to $5.28 billion. Abdulnasser bin Kalban, CEO of EGA, stated that the company has been tested like never before during this recovery period, while focusing on long-term growth. Despite the challenges, EGA maintained its adjusted earnings before interest, tax, depreciation and amortisation margin at 30% in the period, up from 28% the previous year, driven by higher aluminium prices and disciplined cost management.

Sales volumes dropped 36% to 1.33 million tonnes, due to reduced metal availability and logistics constraints. EGA established alternative export routes to ports outside the Strait of Hormuz and signed an agreement with Gulftainer to expand aluminium exports through UAE's eastern coast ports. The company is also diversifying inbound supply routes and has renewed a bauxite agreement with Guinea for up to 4.9 million tonnes annually until 2044.

Production at Al Taweelah is increasing as more reduction cells come back online, with a full restart expected in the first quarter of 2027. The company estimates that restoring Al Taweelah production will require $400 million in capital expenditure, financed from its balance sheet and operating cash flow. EGA's balance sheet remains strong, with $1.93 billion in cash and term deposits and an additional $1 billion available through an undrawn revolving credit facility.

The company continues its global expansion, having acquired an 80% stake in Italian aluminium recycler Eco Green in September, expanding its global recycling capacity to over 400,000 tonnes annually.