Qalaa Holdings, a leading energy and infrastructure investment company (CCAP.CA on the Egyptian Exchange, formerly Citadel Capital) announced its consolidated financial results for the quarter that ended in 30 June. The company recorded a net loss worth EGP 2.8bn in 2017, compared to EGP 277.5m in 2016. Chairperson and Founder of Qalaa Holdings Ahmed Heikal said that this loss was driven predominantly by the full impairment of Africa Railways' assets in Kenya. Moreover, factoring out Africa Railways' impairment net, Qalaa recorded a loss of EGP 20.6 million in 2017, said Heikal. The company announced its revenues reached EGP 2.3bn during the second quarter (Q2) of 2017, with revenue growth of 25% y-o-y. TAQA Arabia`s revenues increased by 24% as it benefits from the gradual phase-out of energy subsidies. Moreover, Tawazon reported 127% growth in revenues y-o-y due to the higher demand for the alternative fuels including biomass and Refuse Derived Fuel (RDF) as well as new contracts for the construction of sanitary landfills. Heikal said Qalaa achieved a 76% EBITDA growth y-o-y to reach 167.4m in 2017. He added that the EBITDA growth was driven by the positive contribution of Ascom, Gozour, and Tawazon's Entag subsidiary in Oman. He explained that the growth in the EBITDA reflects a decrease in the administrative and general expenses to stand at 11% from the total revenues of 2017, compared to 12% during the same period last year. On the other hand, Qalaa`s revenues from sale of investment was worth EGP 404.4m in 2017, following the sale of ASEC's Djelfa plant (the company's cement greenfield plant in Algeria) in late May 2017, according to Heikal. He added that Qalaa's losses from discontinued operations declined to EGP 11.7m in Q2 2017, compared to EGP 149.0m during the same period in 2016 and EGP 225.6m in Q1 2017. In an another context, Heikal said that Qalaa's Egyptian Refining Company is at 95% completion, which will enhance the energy security, provide high-quality fuel products, and reduce reliance on imports. Qalaa's mining subsidiary Ascom is gaining increased price competitiveness both locally and regionally as a result of the Egyptian pound floating as well as its increasing ability to offer high-quality local substitutes for imported industrial materials that are included in modern construction applications for sound and heat insulation, said Heikal. "We are also pushing through higher operational efficiency at Dina Farms, as we seek to cement its standing as one of the country's leading agribusinesses," according to Qalaa Holdings chairperson and founder. He stressed that Qalaa's focus will be to bring ERC online and translate competitive advantages and operational efficiencies gained across its portfolio into bottom-line profitability and transfer returns to its investors.
