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Egypt Aluminum swings to losses in H1-19/20 unaudited financials

Egypt Aluminum swings to losses in H1-19/20 unaudited financials
Revenues plummeted to EGP 3.58 billion
Egypt Aluminum
EGAL
-2.75% 93.36 -2.64

Cairo – Mubasher: The unaudited financial results of Egypt Aluminum showed a turn to losses during the first half of fiscal year 2019/2020.

The aluminium manufacturer suffered net losses of EGP 595.7 million during the six-month period ended 31 December 2019, against net profits of EGP 758.3 million in the prior-year period, according to a statement to the Egyptian Exchange (EGX) on Thursday.

The negative turn in H1-19/20 financial was attributed to an increase in electricity and other production costs, along with a drop in the basic price of aluminium on the London Metal Exchange. 

In addition, the exit of large investments and the recent depreciation of the US dollar against the Egyptian pound have also led to the company’s losses.  

During the July-December period of 2019, the company’s revenues plummeted to EGP 3.58 billion, compared to EGP 7 billion in the corresponding period a year earlier.

It is noteworthy that during the first quarter of FY19/20, the company turned to losses on the back of higher electricity and other production costs.