Qalaa losses deepen in 1Q2021 on ERC “difficulties”
Operational issues at the Egyptian Refining Company saw Qalaa Holdings turn in an EGP 478.6 mn loss in 1Q2021 compared to its EGP 405.1 mn loss in the same period in 2020, according to a company statement (pdf). Revenues fell 23% in the period as ERC closed for almost a month during the quarter and had a 20-day production slowdown. Total revenues came in at EGP 8 bn, down from EGP 10.4 bn last year.
Things are better, looking past the ERC: Revenues excluding ERC rose 9% to EGP 3.9 bn as the company saw the performance of its other subsidiaries pick up on the back of the improved economic environment. Taqa Arabia saw its top-line grow 3% while Ascom and National Printing both saw improved revenues thanks to the normalization of international trade. “I am pleased to report that save for the operational stoppage at ERC that exacerbated the effect of covid-19 on its refining margins, we delivered strong performances across our subsidiaries,” Qalaa Chairman Ahmed Heikal said.