Back to the complete issue
Sunday, 5 July 2020

Qalaa Holdings reports 1Q2020 results

EARNINGS WATCH- Qalaa Holdings’ revenues soared 191% y-o-y in 1Q2020 to EGP 10.4 bn, the company said in its quarterly earnings release (pdf). The revenue growth came as Qalaa’s flagship greenfield Egyptian Refining Company — which began operating at 100% capacity in 2019 — began booking sales revenue as an operational asset. ERC brought in EGP 6.8 bn in revenues, accounting for 66% of Qalaa’s topline. Qalaa Holdings booked a consolidated net loss after minority interest of EGP 405.1 mn in 1Q2020 against a net loss of EGP 154.6 mn in 1Q2019.

Qalaa expects the “serious challenges” posed by the covid-19 pandemic to persist in 2Q2020 and beyond, including the “dislocation” of oil and petroleum product markets globally, but the company is still confident that ERC will be able to “deliver significant incremental value to Qalaa’s bottom-line in due time,” said co-founder and Managing Director Hisham El Khazindar. Qalaa Chairman Ahmed Heikal also said the company is maintaining a positive outlook despite the pandemic and has no plans for layoffs at this time.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of HSBC Egypt (tax ID: 204-901-715), the leading corporate and retail lender in Egypt; EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Mashreq (tax ID: 204-898-862), the MENA region’s leading homegrown personal and digital bank; and Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt.