Aluminium producer restarts 18% of Al Taweelah cells following March shutdown.
Dubai: Emirates Global Aluminium (EGA) reported a Dh725 million impact on first-half net income following the March attack that triggered an emergency shutdown at its Al Taweelah facility. Aluminium production at the site is expected to return to pre-incident levels in the first quarter of 2027.
EGA reported net income of Dh1.7 billion for the first six months of 2026 after factoring in the impact of the incident. Excluding the impact, adjusted net profit rose 34% year-on-year to Dh2.46 billion.
The disruption also significantly affected production and shipments. EGA’s cast metal output fell to 1.006 million tonnes from 1.420 million tonnes a year earlier, while total aluminium sales declined 32% to 939,000 tonnes.
Revenue dropped to Dh13.54 billion from Dh15.07 billion, mainly due to lower sales volumes following the Al Taweelah incident. The decline was partly offset by higher realised aluminium prices.
Al Taweelah recovery moves ahead
EGA’s Al Taweelah operations suffered significant damage on March 28 after Iranian attacks on Khalifa Economic Zone Abu Dhabi triggered an emergency shutdown across the site.
The recovery is expected to require around Dh1.5 billion in capital expenditure, with most of the spending planned for 2026 and the remainder allocated to 2027.
EGA has restarted 227 of Al Taweelah’s 1,262 reduction cells, representing around 18% of the total. The first restored cell was brought back online on May 26, and all three potlines have now been energised.
Hot metal production is expected to gradually increase as more cells return to operation. EGA currently expects production to return to pre-incident levels in the first quarter of 2027, although the company said it is working to bring forward the recovery timeline.
The first half of 2026 was the most challenging period in the long history of EGA. The safety and wellbeing of our people was our first priority throughout, and I thank our teams for their dedication in the most difficult of circumstances.
— Abdulnasser Bin Kalban, CEO of Emirates Global Aluminium
Shipments hit by Gulf disruption
The regional conflict also disrupted EGA’s ability to deliver aluminium to customers, leading the company to temporarily suspend new outbound shipments from the UAE in March and resulting in higher domestic inventories.
EGA has since established alternative export routes through ports outside the Strait of Hormuz. These routes have allowed the company to gradually increase shipment capacity and reduce stockpiles in the UAE.
A full return to pre-incident shipment levels is expected to depend on the reopening of the Strait of Hormuz. However, EGA is also developing alternative trade routes to reduce its longer-term reliance on the waterway.
Inbound logistics remained operational, with raw material deliveries sufficient to meet the needs of Jebel Ali’s operations and the Al Taweelah restart programme. Production at Jebel Ali continued without interruption throughout the first half.
Earnings rise despite lower volumes
Higher aluminium prices, stronger regional premiums, lower alumina costs and ongoing cost-control measures helped offset the financial impact of reduced production.
Adjusted EBITDA rose 11% year-on-year to Dh4.50 billion from Dh4.06 billion, while the adjusted EBITDA margin improved to 33% from 27%.
Reported EBITDA stood at Dh4.42 billion after accounting for an Dh84 million impact from the Al Taweelah incident.
The average London Metal Exchange aluminium price rose to $3,382 per tonne in the first half, up from $2,538 per tonne a year earlier.
EGA’s board also approved an interim dividend of Dh1.72 billion, equivalent to 70% of the company’s adjusted net income.
Alumina and recycling operations restart
EGA’s Al Taweelah alumina refinery produced 602,000 tonnes in the first half of 2026, down from 1.142 million tonnes a year earlier following the March shutdown.
Production at the refinery resumed in early July, reaching around 50% of pre-incident levels within days. EGA said the pace of the remaining recovery will depend on supply-chain conditions and its strategy for sourcing alumina.
The company’s Al Taweelah recycling plant has also restarted its ramp-up and is currently operating at around 10% capacity. Full production is expected by the end of the fourth quarter of 2026.
Through its Najah 2.0 programme, EGA delivered Dh353 million in improvements during the first half compared with its 2024 baseline. The gains came from the alumina refinery, operational efficiency measures and procurement savings. The company is targeting Dh1.6 billion in annual improvements by 2030.
Global expansion continues
EGA is also continuing work on its planned 750,000-tonne-per-year primary aluminium plant in Oklahoma, where it holds a 60% stake in a joint venture with Century Aluminum.
Commercial, permitting and technical work on the Oklahoma project continued during the first half, with first aluminium production expected by the end of the decade.
EGA is also moving forward with its planned acquisition of an 80% stake in Italian aluminium recycler Eco Green. The transaction has received the necessary regulatory approvals and is expected to close later this quarter.
The company ended June with Dh6.07 billion in cash and term deposits, along with Dh3.67 billion in undrawn revolving credit facilities. Total debt stood at Dh18.1 billion, up from Dh16.9 billion a year earlier.
Cash flow from operations fell to Dh1.48 billion from Dh3.44 billion, largely reflecting a strategic increase in inventories to support operations during the Al Taweelah restoration and subsequent production ramp-up.
