EARNINGS WATCH- Elsewedy Electric reports 2Q2020 net profits falling 44.8% y-o-y: Elsewedy Electric reported a 44.8% y-o-y decline in net profits to EGP 514.17 mn in 2Q2020, largely as a result of covid-induced disruptions in the broader economy that has slowed operations, the company said yesterday in an earnings release (pdf). Revenues during the second quarter saw a 9.6% y-o-y decline to EGP 9.34 bn. Despite the covid disruptions, however, the company’s top line was largely supported by growth in turnkey projects, which rose 27% y‐o‐y to reach EGP 4.5 bn in 2Q2020.

Outlook: As social distancing measures ease in Egypt and globally, “we look forward to maximizing our revenues through the ramp up of our business development activities, with a focus on turnkey projects in new promising markets and regions [and] … look forward to executing our projects as scheduled,” CEO Ahmed El Sewedy said. El Sewedy also signaled that the company is on the lookout for M&A, noting that it is screening “accretive M&A opportunities with the objective to enhance our footprint as well as our portfolio of products and services.”

Dice reported a consolidated net loss of EGP 92.76 mn in 1H2020, compared with net profits of EGP 73.01 mn during the same period last year, according to an EGX disclosure.