Emirates Global Aluminium Sees Profit Soar Ahead of Possible IPO - Bloomberg

Emirates Global Aluminium Sees Profit Soar Ahead of Possible IPO - Bloomberg

Emirates Global Aluminium PJSC, the Middle East’s biggest producer of the metal, posted a record profit in the first half of the year as prices soared along with those of other commodities.

The company, whose United Arab Emirates-based shareholders are considering an initial public offering, generated income of 1.74 billion dirhams ($473 million), after a loss of $57 million a year earlier. Core earnings were $950 million.

Aluminum -- a light, easily-recyclable metal used in everything from beer cans to plane parts and which may be used more often in electric vehicles -- has climbed as major economies recover from the Coronavirus pandemic. Futures in London are up almost 35% to $2,650 a ton, the highest in around a decade.

“We are bullish about prices,” EGA’s chief financial officer, Zouhir Regragui, said in an interview. The short-term outlook is positive because of the post-Covid economic bounce, while in the long run aluminum will benefit as producers manage to cut their greenhouse gas emissions, he said.