EARNINGS WATCH- Qalaa Holdings has reported a net profit of EGP 1.35 bn in 2018, compared to a loss of EGP 4.71 bn in 2017, according to the company’s earnings release (pdf). Revenues jumped 25% y-o-y to EGP 13.17 bn during the year, up from EGP 10.55 bn in 2017, and “driven by strong performance across all subsidiaries especially TAQA Arabia and Al-Takamol cement.” Annual profits were supported by Qalaa’s deconsolidation of operational liabilities from its Africa Railways investments, resulting in a EGP 3.7 bn “non-cash one-off gain.”

Looking ahead: Qalaa pressing ahead with a restructuring strategy to deliver operational profitability to its shareholders “with the imminent start of production” at its Egyptian Refining Company (ERC). ERC has already begun trial operations earlier this year and had supplied the Egyptian General Petroleum Corporation with around 160k tonnes of refined crude as of May. “[We] are actively seeking a larger ownership stake in this flagship project,” Heikal said. “We are also actively working to finalize exits from our cement portfolio that will further strengthen our financial position and serve as a net positive on our bottom line,” co-founder and managing director Hisham El Khazindar said.