File - Petroleum Minister Tarek el-Molla
CAIRO – 4 April 2018: Minister of Petroleum Tarek el-Molla said that Engineering for Petroleum and Process Industries’ (Enppi) initial public offering (IPO) in the Egyptian Exchange (EGX) will contribute to the expansion of the company's ownership base.
It will also provide the company with the appropriate finance to boost the company’s competitive capacity with international specialized companies, Molla added.
This came during the General Assembly of the Engineering Company for Petroleum and Chemical Industries in order to approve the results of 2017, in the presence of First Undersecretary of Petroleum Affairs Mohamed Saffan, Chief Executive Officer of the Petroleum and Accounting Authority Abed Azzargal, and First Undersecretary of the Central Auditing Organization Mahmoud Hanafi.
Enppi comes in at the first phase of the IPOs’ program to float some state-owned companies in the Egyptian Exchange under a five-year program announced in 2016 for the purpose of attracting investment and invigorating the stock market.
Besides Ennpi, the first phase of the program comprises another four companies in the petroleum sector, including Assiut Oil Refining Co (ASORC) and Alexandria Mineral Oils Company (AMOC), in addition to six companies in the petrochemicals sector, including Sidi Kerir Petrochemicals Co, and the Egyptian Ethylene And Derivatives Company, as well as three companies in the logistics sector.
The state IPO program comes in line with the economic reform program adopted by Egypt, and is conducted under the supervision of the Ministry of Investment.
Enppi was contracted to implement 12 domestic and international projects during 2017, coming to a total value of LE 21.5 billion, said Chairman of Enppi Mohamed Hathout.
Hathout clarified that 59 percent of the projects’ value goes for the ventures inside Egypt, while 41 percent is for global enterprises.
He referred to some of the significant projects that the company worked on such as the development works of Zohr Gas Field, gas fields in West Delta and the development of the Atoll field, alongside providing engineering services in the development of the fields of phase 9b.
At the moment, the company is working on contracts amounting to LE 7.7 billion.
The company marked LE 8.6 billion as revenues in 2017, with an increase of 72 percent, according to the company’s chairman.
By focusing on the international activities, Enppi targets to raise its yields from the global projects in Saudi Arabia, United Arab Emirates, Oman, Kuwait, Iraq, Jordon and Algeria.
The company won new ventures in Saudi Arabia in favor of Aramco and Yasraf companies for the project of extending the North Jordan gas line for a length of 56 kilometers, in favor of Fajr Jordanian Egyptian Company for the transportation and supply of natural gas.
Enppi was established in 1978 and is specialized in oil and gas industry and is a provider of fully integrated engineering, procurement, construction supervision and project management services for the petroleum, petrochemicals, power and other industries.