Qalaa Holdings reported a consolidated net loss after minority interest of EGP 450 mn in 3Q2020, widening its losses from EGP 395 mn in 3Q2019, according to the company’s earnings release (pdf). The wider loss comes despite Qalaa’s top line more than doubling to EGP 8.7 bn in 3Q2020, from EGP 3.9 bn in the same quarter last year. Qalaa’s flagship greenfield Egyptian Refining Company — which became fully operational back in 2019 — contributed to the bulk of the consolidated revenues, or nearly EGP 5.4 bn. Due to the pandemic and “a volatile oil market,” ERC booked a net loss before minority interest of EGP 1.96 bn. Qalaa’s effective share in ERC currently stands at 13.1%.

Quarter on quarter, Qalaa’s net loss after minority narrowed 36%.

Qalaa is planning “to engage in a full debt restructuring” for ERC next year “as an exercise in caution and given the relative uncertainty,” co-founder and Managing Director Hisham El Khazindar said. Qalaa remains, however, “optimistic about ERC’s long-term outlook and are encouraged by the recent uptick in oil prices following the news of a potential vaccine,” said El Khazindar.