Emirates Global Aluminium (EGA), the largest industrial company in the UAE outside oil and gas sector, signed a volume commitment extension agreement for 2019 with the global shipping company AP Moller – Maersk for transport EGA’s aluminium to customers around the world.

EGA exports its metal to customers in more than 60 countries worldwide and makes more than 11,000 shipments each year using over 100,000 containers. EGA’s aluminium is the biggest made-in-the-UAE export after oil and gas, reported Emirates news agency Wam.

Walid Al Attar, EGA’s chief marketing officer, said: “EGA has a track record stretching back decades as a reliable supplier of high quality aluminium worldwide for our customers. Meeting our customers’ expectations depends on both the quality of our production and the efficiency of getting the metal to them, so I am pleased to sign this agreement today with one of our most important shipping partners, Maersk.”

EGA works with 20 different shipping lines to ship its products, transporting metal to over 70 global ports. Maersk is one of EGA’s most significant shipping partners, and has supplied shipping services to the UAE aluminium giant since 1992.

Christopher Cook, managing director for Maersk in UAE, Oman and Qatar, said: “EGA is a long-standing key customer of Maersk, and we are grateful for their continuing trust. As the global integrator of container logistics, this agreement enables us to continue to partner with EGA to ensure their aluminium reaches their customers as fast and as cost-effectively as possible.”

 Meanhwile, the company’s revenue for 2018 surged to Dh23.5 billion ($6.4 billion) from Dh20.5 billion ($5.6 billion) the previous year mainly driven by higher sales volumes, higher benchmark price and product premiums and an increase in value-added product sales by 161,000 tonnes to a record 2.3 million tonnes.

Announcing the results for the full year 2018, EGA said its net income plunged 64 per cent to Dh1.2 billion ($325 million) compared to 2017 mainly due to higher raw material prices and despite strong operational performance including record production amid challenging market conditions.

The increase in revenue was driven by higher sales volumes, higher benchmark price and product premiums and an increase in value-added product sales by 161,000 tonne to a record 2.3 million tonne.

Adjusted Earnings Before Interest, Taxes, Depreciation and Amortisation (adjusted ebitda) stood at Dh4.4 billion ($1.2 billion), thus registering a 35 per cent decline from Dh6.6 billion ($1.8 billion) in 2017.

EGA’s adjusted ebitda margin was 18 per cent in 2018 over 32 per cent in 2017. The reduction in adjusted Ebitda was due to higher raw material prices in 2018, mainly alumina where EGA procures 100 per cent of its requirement from third party suppliers.

The Emirati aluminium giant said its exposure to raw material market prices will be reduced significantly once EGA’s alumina refinery in Abu Dhabi and bauxite mining project in the Republic of Guinea start-up and reach full production.