Qalaa Holdings’ losses widened in 1Q2022 despite a surge in revenues, as the depreciation of the EGP made its mark on the company. The company reported a EGP 584.1 mn loss for the quarter, compared to a EGP 478.6 mn loss in 1Q2021, even as revenues more than doubled to EGP 18.7 bn, driven by the surge in commodity prices, improved refining margins at the Egyptian Refining Company, and higher exports, according to its earnings release (pdf).

The company attributed the bottom line figure to a one-off EGP 1.3 bn FX loss caused by the falling value of the EGP, which had a “negative impact on USD-denominated debts and liabilities.” Qalaa “would have recorded a [positive] quarter” if not for the FX losses, it said in a separate statement (pdf).

Subsidiary TAQA Arabia’s revenues rose 13% y-o-y to EGP 2.3 bn, driven by increased fuel sales at TAQA Marketing, higher power distribution volumes at TAQA Power, and expansions in compressed natural gas (CNG) stations and sales volumes at TAQA Gas.

What they said: “We have successfully navigated and capitalized on the prevailing environment, benefiting from higher capacity utilization at our manufacturing businesses and leveraging our pricing advantage to grow exports,” said founder and chairman Ahmed Heikal.

Looking ahead: The company is prioritizing debt restructuring plans for Qalaa and ERC, while continuing to focus on exports to “benefit from the commodity cycle and leverage the advantage available to local manufacturers as global logistic costs continue to surge.” The company will also make “incremental investments” in its existing companies while keeping an eye out for potential fresh acquisitions.