Two of Mubadala’s subsidiaries reported their 2024 earnings yesterday: aluminum producer Emirates Global Aluminum and aerospace engineering unit Sanad.

EMIRATES GLOBAL ALUMINIM-

Emirates Global Aluminium (EGA), backed by Mubadala and the Investment Corporation of Dubai, reported a 23.5% y-o-y drop in net income to AED 2.6 bn in 2024, according to its latest earnings release. The company recorded a 3% rise in revenue to AED 30.4 bn during the period.

What happened? The net income decline was primarily driven by the suspension of bauxite exports from its Guinea Alumina Corporation (GAC) subsidiary after the Guinean government halted shipments in October 2024. This led to a reduction in bauxite exports to 10.8 mn in 2024, down from 14.1 mn wet metric tonnes in 2023. As a result, EGA took a AED 1.8 bn impairment on GAC’s book value. The introduction of a 9% corporate tax in the UAE at the start of 2024 also impacted earnings.

Looking ahead: EGA warned that aluminium price volatility will likely persist in 2025 due to global trade uncertainties. The London Metal Exchange aluminium price rose 6% in 2024, building on a 7% gain the previous year, while US regional premiums reached all-time highs.

In context: US President Donald Trump imposed a 25% tariff on all steel and aluminium imports.

In the pipeline: EGA is building the largest aluminum recycling facility in the country in Al Taweelah, set to produce 170k tonnes of secondary billet annually once operational in 2026. Construction, which began in November 2024, is currently 37% complete. EGA is also eyeing additional US acquisitions after acquiring 80% of Minnesota's Spectro Alloys in August 2024. This acquisition is already benefiting the company by offering zero-tariff supplies as US metal prices increase.

Dividends: EGA distributed AED 3.7 bn in dividends to shareholders for 2024, matching the record payout from 2023.

The story got ink from Bloomberg and Reuters.

SANAD-

Mubadala’s aerospace engineering and leasing arm Sanad Group reported a 40% y-o-y revenue increase to AED 4.9 bn in 2024, according to a press release (pdf). The top-line performance was attributed to a rise in global demand for engine maintenance, repair, and overhaul (MRO) services, expanding into foreign markets, and inking agreements with airlines and original engine manufacturers.

REMEMBER- Sanad signed a AED 73.5 mn agreement to extend its partnership with aviation maintenance firm Global Aerospace Logistics (GAL) in November 2024, allowing it to continue providing maintenance services for the Rolls-Royce Trent 700 engines. The company also partnered with Airbus in August 2024 to provide MRO services for Airbus engines. It also sold 16 aircraft engines to Etihad Airways, valued at approximately AED 1.5 bn in October 2024.

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