Qalaa Holdings announced on Tuesday a 22% year-over-year increase in revenues in fiscal year (FY) 2016/2017, to reach EGP 9.3bn, due to the favourable economic trends along with its energy subsidiaries' strong growth. The consolidated financial results cite top-line performance achieved by TAQA Arabia and Tawazon, and increased competitiveness at ASCOM's mining subsidiaries; FY 2016/2017 earnings before interest, taxes, depreciation, and amortisation (EBITDA) saw a 56% y-o-y increase. Meanwhile, the Egyptian Refining Company (ERC) is scheduled to begin production in 2019. On the other hand, net loss after minority interest recorded EGP 4.7bn, driven primarily by EGP 4.2bn in what management expects to be the final round of significant impairments, as well as by EGP 434.1m in losses from discontinued operations. "Qalaa's full-year results reflect the ongoing transformation across our portfolio companies, with several platforms gearing up for a new growth phase," said Qalaa Holdings Chairperson and Founder Ahmed Heikal. He added that Qalaa has reached a restructuring agreement for the Egyptian Refining Company with all stakeholders, including lenders, co-shareholders, and contractors, to ensure timely project completion, and that Qalaa is currently exploring options to potentially increase its indirect ownership stake in that megaproject. Qalaa recorded substantial growth in terms of EBITDA to reach EGP 769.1m in FY 2016/17, up 56% y-o-y, with growth being driven by Qalaa's mining, cement, and agri-food sectors. Major impairments during FY 2016/17 included EGP 3.2bn booked for Africa Railways (RVR), which also added EGP 224m in losses from discontinued operations. "We also continue to push forward with our portfolio restructuring strategy, whether through asset sales or initial public offerings, having exited our investment in garment manufacturer DICE through an IPO on the Egyptian Exchange, divested from ASEC Djelfa, and most recently, signed an SPA to exit Designopolis Mall through the sale of our stake in Bonyan in Q2 2018," said Qalaa Holdings Co-Founder and Managing Director Hisham El-Khazindar.
