Qalaa Holdings reported a 46% increase y-o-y in consolidated revenues to EGP 12.8bn and EBITDA also rose nearly sevenfold to EGP 1.2bn in 3Q21. The company's strong performance was driven by the success of Qalaa's operational and growth strategies across its platform companies and supported by a global rally in commodity prices and improved refining margins at ERC; excluding ERC the Group records a 39% y-o-y growth in revenues to EGP 4.7bn and recurring EBITDA increased by 63% y-o-y to EGP 520.6m in 3Q21. For the coming period, management remains optimistic about Qalaa's organic growth strategies through incremental investments to unlock the potential of its subsidiaries; "Qalaa Holdings successfully delivered strong top line results in 3Q21, with revenues growing by a solid 46% year-on-year driven by the success of our operational and growth strategies across our platform companies," said Qalaa Holdings' Chairperson and Founder Ahmed Heikal. "Our results reflect the positive impact of a global rally in commodity prices on Qalaa's businesses, and the recovery in ERC's refining margins during the period." "I would like to highlight a number of positive factors that will continue to influence our results going forward. First, supply chain restrictions and energy shortages in China are giving pricing power to global producers in almost all sectors. Second, the global recovery is causing inflation to pick up. Companies with a high percentage of local inputs and resources will benefit. Third, lack of hydrocarbon investments will put a floor under oil prices and consequently refinery margins. Fourth, high hydrocarbon prices will encourage the shift to renewables, a key focus for TAQA going forward. Fifth, with pressing global environmental issues, general energy efficiency projects will be a focus. Sixth, Egypt's spending on infrastructure will give rise to O&M companies in a variety of sectors to maintain new assets. Seventh, the recovery of tourism and the Egyptian economy along with population growth will drive consumption growth. Eighth, the global political environment will see many global manufacturers to distribute their manufacturing base; a trend that could benefit Egypt. Finally, the pressure on the trade deficit will give rise to an environment supportive of local manufacturing. Qalaa is in the right spot to capitalize on these trends," said Heikal. "I would also like to reiterate that the true value of Qalaa's performing assets is masked due to the adoption of international accounting standards, which account for assets at their historical cost and adjust for impairments, while not taking into consideration any revaluation adjustments," he added.
