Dubai Aluminium profits jump 65pc to $953m
Dubai, March 21, 2012
Dubai Aluminium Corp (Dubal) saw net profits jump 65 percent year on year to a record 3.52 billion dirham ($953 million) in 2011, the government-owned smelter said on Wednesday.
Dubal's record profits were thanks largely to a 28.5 percent year on year increase in gross sales to 11.14 billion ($3.03 billion), making it one of the most profitable Dubai government businesses.
'Reducing budgeted capital expenditures and maintaining tight working capital control contributed significantly to achieving improved cash generation from operating activities and free cash flow,' chief executive Abdulla Kalban said in a statement.
The company, which began operations in 1979 and now has a production capacity of over one million metric tonnes a year, said higher aluminium prices and increased revenues from its share in the Emirates Aluminium smelter near Abu Dhabi also helped drive income to record levels last year.
Aluminium smelting is one of man's most energy-hungry inventions, depending on continuous supplies of large amounts of electricity - largely fueled by gas in the UAE.
The emergence of aluminium smelting across the Gulf, often driven by low, government-set gas prices for industry, is a key factor behind soaring gas demand and imports into the region. - Reuters