The Egypt Aluminium Company (Egyptalum) is expecting to report EGP 993.773m in net losses during fiscal year (FY) 2019/20, compared to the EGP 870.927m net profit in FY 2018/19.
In a statement to the Egyptian Exchange (EGX) on Tuesday, the company disclosed that its revenues decreased to EGP 7.254bn in the period from July 2019 to June 2020. This compared to the EGP 12.188bn from July 2018 to June 2019.
The company attributed its losses to the increase in production costs, especially in relation to electricity consumption, during FY 2019/20.
In addition, the decline in the US dollar exchange rate against the Egyptian pound has contributed to these losses, alongside the sharp decline in metal prices the International Metal Exchange in London.
Other factors behind the company’s losses include the low returns on financial investments due to their low revenue rates, and the company allocating a large part of its financial investments to pay off its financial obligations.
The novel coronavirus (COVID-19) pandemic has also impacted the company’s revenues during the second half (H2) of FY 2019/20, compared to the corresponding period of the previous year.
