Egyptian Currency – File Photo
CAIRO – 30 September 2018: Qalaa Holdings announced that its consolidated results during the second quarter of 2018 turned into profitability, recording a profit of LE 233.28 million, compared to a loss of LE 3.67 billion in the same quarter of 2017, including minority rights.
The company disclosed in a filing to the Egyptian Exchange (EGX) that its standalone results showed a loss of LE 2.35 million, compared to a loss of LE 102.44 million, with a 97.7 percent decrease.
“Our core energy and infrastructure subsidiaries continue to deliver operational growth as they capitalize on favorable market dynamics. Strong revenue growth saw Qalaa report a solid 52 percent increase in its EBITDA for 2Q18, with bottom-line profitability buoyed as gains from restructuring efforts to offset interest expenses carried at the holding and subsidiary levels,” Qalaa Holdings Chairman and Founder Ahmed Heikal said.
“Our results in the second quarter reflect our ongoing efforts to streamline and optimize our portfolio with the company beginning to harvest the merits of its strategy,” Qalaa Holding’s Co-Founder and Managing Director Hisham el-Khazindar said.
“Our decision to bring National Printing into the fold is already seeing it make significant top- and bottom-line contributions, while efforts to clean-up our portfolio and shed discontinued operations has paid off as the account reports almost zero losses in 2Q18,” Khazindar added.
“Meanwhile, as previously communicated, we have booked expected non-cash gain on the partial deconsolidation of Africa Railways nearing LE 1 billion. We are actively exploring avenues to sell or liquidate the company and trigger the complete deconsolidation of its debt obligation which should result in a further gain of c. LE 2.5 billion in the coming months. Together said gains will help offset the effect of a related impairment of LE 3.2 billion booked in FY17, and consequently strengthen our financial position as we head into the next growth phase for Qalaa,” Khazindar stressed.
“As we bring our company closer to the cusp of sustainable operational profitability, we are actively gearing up for the next growth phase across our subsidiaries. At TAQA Arabia, we have earmarked c. LE 8 billion in investments over the coming three years that will see us accelerate the company’s distribution reach with more filling stations, diversify into renewable energy with our pilot solar project in Benban and expand our exposure to conventional energy through investments in coal-fired power plants,” according to Heikal.
Heikal also added that Qalaa is also looking to increase its ownership in the Egyptian Refining Company’s transformative project which is now 98 percent complete and will start commissioning by the end of 2018.
“New capacities for RDF production at Tawazon have already been procured and commissioning is expected by 2019. Said investments alongside similar ventures in our mining and logistics platforms will see Qalaa continue to deliver on this growth momentum and cement its position as an African leader in energy and infrastructure,” Heikal concluded.
Heikal announced earlier that Qalaa Holdings invested LE 18.6 billion in Egypt during fiscal year 2017/2018.
Heikal clarified that the group investments came in the fields of energy, refining and solar energy in Bonyan, in addition to gas delivery to houses and the inauguration of 10 fuel stations.
He also revealed the company plans to pump investments worth LE 30 - 32 billion in various fields during the upcoming period.
Previously, the company announced its first investment in generating solar energy through its subsidiary, Taqaa Arabia, in partnership with Hassan Allam Holdings through photovoltaic (PV) cells, at an investment cost of LE 1.35 billion.
The company clarified in a statement that Taqaa Arabia owns 60 percent of the solar power project, while Hassan Allam holds 40 percent of the project.
It further added that the revenues are expected to reach $10.8 million annually.
Qalaa Holdings recorded a loss of LE 183.95 million including minority rights in the first three months of 2018, compared to LE 596.08 million during the same months of 2017.
In 2017, Qalaa recorded consolidated losses of LE 5.9 billion, compared to LE 5.6 billion in 2016.
Founded in 2004, Qalaa Holdings operates within the diversified financial sector focusing on asset management and custody banks. It has companies operating across North America, the Caribbean, Northern Africa and Eastern Africa.