The domestic market is expected to increase the Elsewedy Electric's revenues as the wire and cable sector recorded a 17% annual increase in sales during the first half (H1) of 2016, according to an official at the company. The wire and cable sector's total annual sales increased by 19%, recording 85,901 tonnes. The sector's revenues reached EGP 6.228bn in H1 of 2016, a 15% growth rate. Elsewedy aims to expand in turnkey projects across the African Sahara markets, the official said, as the sector's contributions in the second quarter (Q2) increased by 1% to reach 23% at the end of H1 of 2016. The Gulf markets' contribution increased from 15% to 16%, especially after the company won a tender to construct a transformer station in Saudi Arabia worth SAR 80m. The official added that Elsewedy has completed some phases of Ataqa and Mahmoudya power plants, which led to a decline in turnkey projects in Q2 of 2016, registering EGP 20.4bn compared to EGP 21.4bn in Q1. Elsewedy recorded revenues of EGP 10.554bn during H1 of 2016—an annual growth of 2%. The company recorded total profits of EGP 2.407bn—a growth rate of 43%. Net profits reached EGP 1.631bn. The net profit during Q2 of 2016 reached EGP 873m—an annual growth of 99%, despite a 12% decline in the company's annual revenues estimated at EGP 5.86bn. The official cited the decline of production costs. The source said that Elsewedy aims to expand in smart meter sales in the Gulf and European markets, benefiting from the high demand for smart meters in these regions. The European markets achieved sales of 46% and the Gulf market 16% in the smart meter sector during H1 of 2016. Elsewedy increased its smart metering contracts portfolio to €148m as of the end of H1 of 2016, while transformer contracts reached $48m, the official said. Mai El-Sayed, financial analyst at Mubasher Financial Services, said in a report on Elsewedy's financial results that the growth of the turnkey projects sector during H1 of 2016 depended on the power plant contracts signed by Siemens in Egypt and Angola's power plants. She noted that the EGP 1bn decline in contracts during Q2 of 2016 is temporary. Elsewedy's revenues for H1 of 2016 Annual Growth Rate Revenue Sector 15% EGP 6.228bn Wires and Cables -20% EGP 3.388bn Turnkey projects 25% EGP326 m Meters 77% EGP 208.9m Transformers -17% EGP 149.1m Other electricity products 6% EGP10.553 bn Total
