Emirates Global Aluminium reported a 34 per cent annual increase in its first-half adjusted net profit after regional fallout from the Iran war.
The company’s six-month adjusted net profit, which excludes the effect of the Iranian attack on Al Taweelah plant in March, rose to Dh2.46 billion ($670 million), the UAE’s largest industrial company outside the oil and gas sector said on Wednesday.
Reported net income for the January-June period reached $473 million, with the company taking a $197 million hit from the drone attack on the plant.
EGA said it was spending about $400 million to restore production at Al Taweelah, with most of the expenditure expected during 2026 and some during 2027.
This will be financed from its balance sheet and operating cash flow, EGA's chief financial officer Pal Kildemo told The National.
EGA's Al Taweelah plant was among the critical infrastructure sites struck as Iran launched attacks across the Gulf. The production unit at Khalifa Economic Zones Abu Dhabi was hit on March 28, sustaining “significant damage”.
The company plans to restore production to prewar levels by first quarter of 2027 but is working with advisers to find ways to accelerate it.
Basic utilities have been restored across the site, with natural gas and electricity availability projected to increase in line with the needs of the restart programme.
“The sooner we do it, the better,” chief executive Abdulnasser bin Kalban said. “Our customers need our high-quality metal as soon as possible, and also [it] is good for the company's financial performance.”
Revenue during the first six months of 2026 fell 10 per cent to Dh13.5 billion due to lower sales volumes after the incident at Al Taweelah, which was partially offset by higher aluminium prices.
The average London Metal Exchange aluminium price was $3,382 per tonne in the first half of the year, up from $2,538 per tonne for the same period in 2025.
The total aluminium sales were down 32 per cent to 939,000 tonnes in the first half, the result of logistic constraints arising out of the regional conflict and the closure of the Strait of Hormuz. However, the company said it established alternative export routes through ports outside the strait to increase shipments.
Recovery to pre-incident shipment levels is expected to be contingent on the reopening of the strait, which remains virtually closed amid conflict between the US and Iran.
“Despite significant logistics challenges, our supply chain is robust, and we continue to make deliveries to customers,” Mr bin Kalban said.
EGA's total aluminium production in the first half was down 47 per cent on an annual basis to 602,000 tonnes.
The company expects “strong” financial results in the second half, with the increase in production offsetting lower aluminium prices.
“We have two things which are moving differently in the second half than the first half. In the first half, we had help from very strong market prices, but on the other side, we had lower production due to the Al Taweelah incident,” Mr Kildemo said.
“The second-half prices have come somewhat down, so that's a negative. But we will be gradually ramping up our production, which will offset some of these impacts.”
Aluminium was trading at $3,364 per tonne, up 1.4 per cent, on the LME, at 12.32pm UAE time on Wednesday.
EGA also plans to close the acquisition of Italian aluminium recycling company Eco Green next month, Mr Kildemo said.
