EGA considering initial public offering as rising aluminum prices boost company profits
25 Aug 2022 16:16 reported by Joy Liu
Emirates Global Aluminium (EGA), a premium aluminum producer based in the UAE and the largest aluminum producer in the Middle East, said that its shareholders were considering an initial public offering (IPO) as the company's profits soared due to rising aluminum prices.
EGA reported a growth of nearly four times in its profit in the first half of this year, reaching a record AED 5.9 billion, surpassing the AED 5.5 billion recorded for last year. Besides, the company’s revenue rose by roughly 70% to AED 18.3 billion.
The LME aluminum price hiked by 42% in 2021 after the demand rebounded from the worst epidemic, and the price surged further this year due to the escalated Russia-Ukraine conflict.
Zouhir Regragui, Chief Financial Officer of EGA, said that the aluminum demand has a tight relationship with the health of the global economy. The economic outlook for the residual of this year is uncertain, while the market condition might not be as good as in the first half of the year.
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