Cairo – Mubasher: Qalaa Holdings, a leading investment company in Africa and the Middle East (MEA) region, posted a 62% year-on-year (YoY) rise in revenue to EGP 30.30 billion during the first quarter (Q1) of 2023.
The EGX-listed firm recorded earnings before interest, taxes, depreciation, and amortisation (EBITDA) valued at EGP 10.30 billion as of 31 March 2023, compared to EGP 3.90 billion in Q1-22.
The positive performance reflects solid refining margins at the Egyptian Refining Company (ERC) and strong performances across all subsidiaries, according to a press release.
Excluding ERC, Qalaa’s revenues hiked by 38% YoY to EGP 6.90 billion in Q1-23, backed by enhanced performances across all subsidiaries.
During the first three months (3M) of 2023, the revenues of TAQA Arabia climbed by 27% YoY to EGP 2.90 billion from EGP 2.30 billion.
ERC’s gross refining margin averaged $3.70 million on a daily basis in Q1-23, up from $2.70 million in the year-ago period, following higher oil product prices.
On a quarterly basis, the refining margins plummeted to a daily average of $3.70 million in Q1-23 when compared with $4.90 million in Q4-22.
National Printing witnessed 54% higher revenues at EGP 1.40 billion during Q1-23, versus EGP 915 million in Q1-22.
Meanwhile, ASCOM delivered an annual leap of 74% in top-line to EGP 498.30 million during the three-month period that ended on 31 March 2023, mostly driven by the impact of the EGP devaluation on the USD-denominated businesses such as ACCM and GlassRock.
In Q1-23, ASEC Holding’s revenues increased by 26% YoY to EGP 1.30 billion due to the depreciation of the EGP against foreign currencies.
Dina Farms logged revenues valued at EGP 409.80 million in 3M-23, marking a 49% YoY surge.
Regarding CCTO’s revenues, they jumped by 40% YoY to EGP 130.70 million in Q1-23, driven by improvements across all revenue streams at its Egypt arm NRPMC.
The Chairman and Founder of Qalaa Holdings, Ahmed Heikal, commented: “The global economic landscape continues to present significant challenges, with the world grappling with one of the most difficult economic periods in recent memory.”
“With debt levels still at historic highs and inflation and interest rates yet to normalise, there are continued expectations of long-term depressed economic growth, higher long-term interest rates, and a heightened focus on reducing debt,” Heikal said.
He also noted: “The listing of TAQA Arabia enables Qalaa to follow through on its plan to settle some of its debt obligations through the sale of some of its assets.”
“Qalaa is now in the process of settling some debt obligations through the sale of 20% of TAQA Arabia shares as part of phase one of TAQA’s ownership restructuring, with the group retaining the option of repurchasing these shares in the future,” the Chairman concluded.
