Egypt Kuwait Holding’s (EKH) attributable net income rose 52% y-o-y to USD 45.2 mn in 2Q2021, up from USD 29.8 mn (pdf) a year before, according to a company earnings release (pdf). EKH’s 2Q2021 top line came in at USD 186.1 mn, a 24% y-o-y increase that was driven primarily by a 27% y-o-y increase in revenues at the fertilizer and petrochemicals segment, “which continued to reap the benefits of the rally in commodities prices and growing export sales as markets opened up,” EKH Chairman Moataz Al-Alfi said. The rally was underpinned by EKH’s energy and energy-related segment, which was buoyed by “growing contributions from NatEnergy’s electricity generation and distribution facility, Kahraba,” Al Alfi added.

Looking forward: EKH is “optimistic” in the long run about long-term growth prospects of its natural gas distribution business, especially in light of the government’s ‘Hayah Karima’ (Decent Life) initiative — which will revamp infrastructure across underprivileged villages and increase the number of households with supplies to natural gas, providing expansion prospects for the group going forward, Al Alfi said. The company has earmarked c. USD 300 mn in capex spending, aiming to expand its operations across the horizon and “maximize” value generated from its subsidiaries, said CEO Sherif El Zayat. EKH is also moving steadily towards bringing its sulphuric acid factory at Sprea Misr online by 1H2022, with plans to increase capacity of its electricity generation and distribution facility, Kahraba, by 20 MW to bring its total generation capacity to c. 135 MW by 2H2022, El Zayat added.

Contact Financial Holding’s consolidated net income jumped 72% y-o-y to EGP 218 mn in 1H2021, up from EGP 127 mn in the same period last year, according to a company press release (pdf). Net income from its financing business rose 64% y-o-y to EGP 215 mn, driven by an expansion in its product range after the company received its consumer financing license. Contact also added five new branches nationwide and grew its merchant network sixfold y-o-y. The company also saw its new ins. business in the black, adding EGP 3.4 mn to its bottom line, compared to losses of EGP 3.9 mn in 1H2020.

The company launched several financing products in 1H2021, including home finishing financial product Shattab, a new club fees financing product and ins. policies. It also rolled out a 10-year mortgage product in partnership with online real estate portal Sakneen, in which Contact has invested. Contact saw its new mortgage financing grow sixfold, while home equity loans (which the company had previously called home finishing loans) more than tripled over the first six months of the year.

Looking ahead: Contact plans to continue its geographical expansion and develop its client mobile application as it continues investing in tech following the relaunch of its contactcars.com platform. The company plans to launch “a dedicated app for the dealer network making it easier for dealers to source, value and remarket used cars using a digital auction tool.”