Egyptalum expects strong business results in the coming period, taking advantage of several factors, whether on the global or local scene.
The company would directly benefit from the rise in the price of US dollar, coinciding with the state’s tendency to support the industrial sector, as well as the effects of the Russian-Ukrainian war on increasing the demand for aluminum is in the interest of the company globally.
An official source in the company confirmed that the Russian-Ukrainian war has a positive impact on the company’s business, which is still ongoing, and has raised the demand for Egyptian crude locally and globally.
The source added to Daily News Egypt that the company has a strategic stock of raw alumina that is sufficient for a period exceeding 8 months, pointing out that the company is insuring its stock as a precautionary strategy that it adopts, pointing out that it is working to directly benefit from the export opportunities available globally by increasing the production capacity is currently after the development process carried out by the company, especially since the export represents about 50% of the revenues.
Egyptalum is currently collecting the necessary funding to raise the company’s productivity to 320,000 tonnes annually through a $300m development process.
Eman Marei, a financial analyst at the Arab African Company for Securities, expected that Egyptalum would provide a strong performance thanks to the current shortage of supplies in light of the conflict between Russia and Ukraine and the measures of European countries to reduce imports from Russia.
She added that the company benefits greatly from the rise in the price of the dollar against the pound, given that exports represent about 50% of the company’s revenues, coinciding with a low possibility of raising electricity prices in terms of costs, given the Egyptian government’s promise of more support for the industrial sector in the coming period.
The research set a target price for the company’s share at EGP 24.2 per share, compared to closing at the end of trading on Monday, EGP 20.44 per share.
The company recorded a net profit of EGP 2.4bn during the period from July 2021 to June 2022, compared to profits of EGP 28.27m in the comparable fiscal year.
The company’s revenues rose during the last fiscal year to EGP 14.48bn, compared to revenues of EGP 11.36bn in the previous fiscal year.
The company attributed the profit jump during the last fiscal year to the development of a flexible strategy to deal with metal prices in the local and export market, as well as the prices of main and auxiliary raw materials.