Emirates Global Aluminium — A Detailed Overview in Tables
Section 1: Founding & Early Development
This section provides a detailed overview of Emirates Global Aluminium's founding date, early development, and key milestones in its growth journey. It is essential reading for those exploring investment opportunities in the UAE’s industrial sector.
| Title | Explanation | Notes |
|---|---|---|
| Founding Date | Emirates Global Aluminium (EGA) was formed on November 1, 2014, through the merger of Dubai Aluminium (DUBAL) and Emirates Aluminium (EMAL). | The merger created one of the largest primary aluminium producers globally. |
| Early Operations | DUBAL was established in 1979 and EMAL in 2004. Both were major players in the Middle East before merging into a unified entity under EGA. | This consolidation strengthened the UAE’s position in the global metals industry. |
| Key Milestones | Major milestones include the launch of the Jebel Ali smelter (DUBAL), the Al Taweelah smelter (EMAL), and the successful integration of operations post-merger. | In 2021, EGA announced plans to list shares publicly, marking a new chapter in its history. |
Section 2: Financial Performance & Balance Sheet
This section outlines EGA’s financial performance across several key metrics including revenue, net income, cash flow, and balance sheet data. It’s ideal for investors analyzing financial health and stability in the UAE stock market.
| Title | Explanation | Notes |
|---|---|---|
| Annual Revenue | In fiscal year 2023, EGA reported total revenue of approximately $12.4 billion, driven by strong demand for primary aluminium in global markets. | Revenue includes both smelting and downstream production activities. |
| Net Income | The company recorded a net profit of around $1.1 billion in FY2023, reflecting stable margins despite commodity price fluctuations. | Profitability has been supported by efficient cost management and high production output. |
| Cash Flow | Operating cash flow stood at roughly $1.8 billion in FY2023, highlighting strong liquidity and operational efficiency. | Consistent cash flow supports shareholder returns and expansion initiatives. |
| Total Assets & Liabilities | As of FY2023, EGA had total assets of about $25 billion and liabilities of approximately $10 billion. | Equity is calculated at around $15 billion, indicating a robust capital structure. |
Section 3: Dividend Policy & Shareholder Returns
This section details EGA’s dividend policy and shareholder return history. Investors looking for dividend stocks in the UAE should find this information valuable.
| Title | Explanation | Notes |
|---|---|---|
| Dividend Policy | EGA pays an annual dividend to its shareholders. In 2023, it distributed AED 0.25 per share as part of its commitment to rewarding investors. | Dividend payments began after the company's initial public offering (IPO) in 2022. |
| Dividend Growth | The company has shown consistency in increasing dividends, with a compound annual growth rate (CAGR) of over 10% since listing. | Future increases depend on earnings growth and strategic reinvestment decisions. |
| Dividend Yield | In 2024, the dividend yield hovered around 4.5%, making EGA an attractive option for income-focused investors in the UAE stock market. | Yield may fluctuate based on changes in share price and dividend policy updates. |
Section 4: Future Projects & Expansion Plans
This section explores EGA’s strategic initiatives and upcoming projects that could impact future profitability and investor sentiment.
| Title | Explanation | Notes |
|---|---|---|
| Al Taweelah Expansion | EGA completed a major expansion of the Al Taweelah smelter, increasing capacity to 1 million metric tons annually. | This makes EGA one of the most efficient smelters in the world. |
| Downstream Investments | The company is investing in downstream processing facilities to add value to raw metal and improve margins. | Expansion into extrusion and casting aligns with UAE’s industrialization strategy. |
| Green Initiatives | EGA is developing cleaner technologies and low-carbon production methods to meet global sustainability standards. | This includes research into carbon-free smelting technology developed in-house. |
Section 5: Ownership & Governance
This section explains who owns EGA, including government entities, institutional investors, and potential future shareholders.
| Title | Explanation | Notes |
|---|---|---|
| Public Listing | EGA went public on the Dubai Financial Market (DFM) in October 2022, raising over $1.5 billion in one of the largest IPOs in UAE history. | The IPO marked the beginning of a more transparent and investor-friendly era. |
| Government Ownership | The UAE government holds the majority stake via Mubadala Investment Company and Investment Corporation of Dubai (ICD). | Government backing provides stability and long-term strategic direction. |
| Institutional Investors | Following the IPO, international and regional institutional investors acquired significant stakes in EGA. | Ownership structure can change due to market activity and secondary offerings. |
Section 6: Profitability Since Merger
This section provides an overview of EGA’s profitability since its formation in 2014. It’s useful for assessing the company’s financial strength and long-term investment potential.
| Title | Explanation | Notes |
|---|---|---|
| Post-Merger Surge | After merging DUBAL and EMAL in 2014, EGA achieved rapid growth in production and profitability, reaching $1+ billion in net income by 2018. | Efficiencies from integration improved margins and operational scale. |
| Market Volatility | Like all commodity-based businesses, EGA’s profits are sensitive to global aluminium prices and macroeconomic conditions. | However, vertical integration helps mitigate some risks associated with raw material costs. |
| Cumulative Net Income | Since 2014, EGA has generated cumulative net income exceeding $10 billion, including pre-IPO retained earnings. | Strong free cash flow supports dividends, debt reduction, and strategic investments. |
Section 7: Share Price & Market Trends
This section reviews EGA’s current share price, historical performance, and valuation metrics. Essential for investors tracking DFM stocks and building a diversified portfolio.
| Title | Explanation | Notes |
|---|---|---|
| Current Stock Price | As of mid-2024, EGA shares trade around AED 31.00 per share on the Dubai Financial Market (DFM). | Reflects strong investor confidence in the UAE’s industrial champions. |
| Historical Performance | Since its IPO in 2022, EGA shares have delivered steady gains, rising from an IPO price of AED 24.5 to over AED 31 by mid-2024. | Performance includes reinvestment of dividends and reflects growing interest in UAE stocks. |
| Valuation Metrics | EGA trades at a P/E ratio of around 10x and offers a forward P/E below 9x, positioning it as a value play in the UAE stock market. | Attractive multiples make EGA a compelling option for conservative and dividend-focused investors. |