EGA H1 EBITDA Rises 11% to Dh4.5 Billion as 18% of Al Taweelah Cells Restart

Q: How did a devastating drone strike and blocked trade route still lead to a 34% profit surge for EGA?

EGA’s 34% profit surge came from stronger unit economics, not higher volumes. The company’s adjusted net profit rose to $670 million because aluminium prices and regional premiums were higher, alumina costs were lower, and management kept a tight grip on costs. Adjusted EBITDA climbed 11% to $1.23 billion and margin expanded to 33% from 27%, showing it earned much more on each tonne it did sell. The disruption did hit the business hard operationally. Sales fell 32% to 939,000 tonnes, revenue declined, and reported net income was reduced to $473 million after a $197 million strike-related charge. But that charge was excluded from the adjusted result, which is why the underlying profit picture looked much stronger than the headline damage suggested. EGA was also cushioned by the parts of the business that kept running. Its Jebel Ali smelter operated at full capacity throughout the period, inbound raw-material supplies remained secure, and the company used alternative export routes outside the Strait of Hormuz to keep shipments moving. It also had metal already on the water and in overseas warehouses, helping maintain some customer supply despite blocked Gulf logistics. Lower financing costs and taxes further lifted adjusted net profit. In short, EGA sold less aluminium, but made more money per tonne, preserved production at Jebel Ali, and used accounting adjustments to separate the one-off strike damage from the underlying business performance.

Q: With the Strait of Hormuz choked off, what alternative logistics routes is EGA using to keep aluminum flowing?

EGA has not publicly mapped every lane, but the evidence shows it is keeping metal moving by routing cargo outside the Strait of Hormuz through UAE east-coast and nearby regional ports, then using overland links and transshipment to reach customers. The company said it used “alternative export routes outside Hormuz,” while its Jebel Ali smelter in Dubai kept running at full capacity. Supporting material points to Fujairah as a key outlet on the Gulf of Oman side, which avoids a Hormuz transit. Industry reporting also indicates cargo has been routed via Sohar in Oman, with onward trucking and intra-GCC movements used to bridge the last leg. For inbound raw materials and some intermediate flows, the workaround has been even more complex. Market intelligence cited in the background describes alumina and bauxite being brought into ports such as Sohar, Duqm and Fujairah, then moved by truck and regional feeder shipments. Separate reporting says Gulf smelters, including EGA’s network, have also used transshipment operations, including via India earlier in the disruption, before shifting to anchorages off Sohar and then onward to Fujairah. So, the practical answer is that EGA appears to be bypassing Hormuz by leaning on ports outside the chokepoint—especially Fujairah and likely Sohar—combined with land transport, feeder vessels and transshipment, rather than relying on direct sailings through the strait.

3 articles · Updated · Gulf News · Aug 12

Dh4.506 billion in adjusted EBITDA and Dh2.46 billion in adjusted net profit marked EGA’s H1 2026, even as Al Taweelah recovery continued after the March 28 Iranian attack.
227 of 1,262 reduction cells at Al Taweelah have restarted, all three potlines are energised, and hot metal output is expected to return to pre-incident levels in Q1 2027.
Dh725 million in incident-related charges cut reported net income to Dh1.73 billion, while revenue fell to Dh13.544 billion as aluminium sales dropped 32% to 939,000 tonnes.
Alternative export routes outside the Strait of Hormuz are gradually lifting shipment capacity and reducing UAE stockpiles, but a full return to pre-incident shipping still depends on the strait reopening.
Dh1.5 billion in restoration spending is planned across 2026 and 2027, while EGA also resumed its alumina refinery and recycling plant ramp-up and approved a Dh1.726 billion interim dividend.