The consolidated revenues of Qalaa Holdings jumped to EGP 45.8bn in 2021, with an annual growth rate of 27%. The company reduced its net losses to EGP 2.3bn in 2021, compared to EGP 2.5bn last year. The company attributed the increase in revenues to the improvement in the refining profit margin of the Egyptian Refining Project and the rapid recovery of markets with the rise in commodity prices globally. Moreover, the strong performance of TAQA Arabia and the National Printing Company were observed. The revenues of TAQA Arabia increased at an annual rate of 15% in 2021 to record EGP 9.1bn, supported by the recovery in the markets, as they increased the rates of electricity distribution and expanding the network of compressed natural gas stations, in addition to an increase in fuel and lubricant oil revenues in the petroleum products marketing and distribution sector. Ahmed Heikal, the Founder and Chairperson of Qalaa Holdings, said that the growth in the revenues of the company this year reflects the flexibility and efficiency of the group in adapting to the continuous economic changes and responding to requirements. Accordingly, the company was able to increase the consolidated revenues at an annual rate of 27% amid the lack of clarity and the impact on operational activities. Heikal added that with the current year approaching its middle, the portfolio of Qalaa's subsidiaries has become more ready and able to adapt to the transformations that occur in the global economy and the continuous changes in various operating environments. He added that the world today is facing a drastic change from the era of globalization to a new era characterized by economic protection policies and the distance from the globalization of markets. As the world entered into this new phase, global inflationary pressures increased significantly. Heikal expects these pressures to continue for long periods, which prompts central banks around the world to curb monetary and financing easing by significantly increasing interest rates after stabilizing them at their lowest levels over the past years. This led to increased pressures on the value of currencies and exacerbated debt levels in emerging markets. Heikal added that the group will continue to implement growth strategies across all subsidiaries and focus on injecting additional investments in developing its business. Heikal said that the administration expects that throughout the coming period, supply disruptions due to political changes will be seen. However, Qalaa Holdings will be able to handle pressures, especially with the continued progress of the Egyptian economy and expanding local manufacturing capabilities, agricultural production, and service sectors. He pointed out that the next stage will witness an increase in government support for the private sector in Egypt, and that Qalaa is fully prepared to benefit from the support He explained that the real value of the assets of Qalaa is not accurately reflected in the financial statements due to adopting international accounting standards that record assets at their historical value and then calculate the impact of impairment costs only without revaluing the assets to reflect their high value. Hisham El-Khazindar, co-founder and managing director of Qalaa Holdings, highlighted the success of the various subsidiaries in benefiting from the changes during the year, making Taqa Arabia continue to benefit from the increasing demand for clean energy by expanding its compressed natural gas stations and reinforcing its presence in the solar and renewable energy market. Ascom and the National Printing Company continued to utilize the advantage of low local costs and the increase in the volume of exports, which reflects the positive impact of developing companies with huge local production capabilities that match international standards. He added that the Egyptian Refining Company achieved strong results thanks to the recovery in the prices of refined petroleum products and the growth of the refining profit margin, which resulted in recording operating profits before deduction of taxes, interest, depreciation and amortization amounting to EGP 2.3bnin 2021, compared to operating losses of EGP 141.4m.
