Cairo – Mubasher: Egypt Aluminum’s annual losses exceeded its paid-up capital of EGP 1.6 billion, Mohamed El-Saadawi, Chairman of the company’s parent, Metallurgical Industries Holding Co, revealed.

The company incurred net losses of EGP 1.7 billion in fiscal year 2019/2020, compared to net profits of EGP 570.93 million a year earlier, El-Saadawi said in a statement released by the Ministry of Public Business Sector on Wednesday.

The overall losses from current activities reached EGP 2.1 billion during the year ended 30 June 2020, he added.

Losses are ascribed to the steep fall in the price of aluminium on the international metal exchanges, leading to a drop in the company’s revenues by EGP 2.4 billion, as well as the impact of the coronavirus (COVID-19) pandemic on the company’s investments.

Moreover, costs increased by EGP 338 million during the last fiscal year due to higher electricity fees and other production costs.

El-Saadawi further revealed that the company paid 21 monthly salaries to employees at a total value of EGP 126.1 million in development support and incentives; however, the employees held a strike and halted production asking for profit-related bonuses.

The halt of production will increase the company’s losses and make the company unable to pay the monthly salaries and meet its commitments, he added. 

In a bourse disclosure on Wednesday, the company said it is currently negotiating with the employees to end the strike.

The company confirmed that the production process, except for the metal drawing, hasn’t been affected by the strike.