Egypt- 03rd, July 2016 -Qalaa Holdings an Egyptian leader in energy and infrastructure (CCAP.CA on the Egyptian Exchange, formerly Citadel Capital) has released its consolidated financial results for the quarter ending 31, March 2016.
Top- line growth was driven primarily by operational improvement at ASEC Cement‘s Sudan subsidiary Al- Takamol and Qalaa’s energy generation and distribution platform company, TAQA Arabic .The two companies collectively contributed 60 % of y-o-y revenue growth of USD 19 million in 1Q16.
“As we look forward, Qalaa remains committed to its transformation strategy focusing its efforts towards its core energy units the Egyptian Refining Company and TAQA Arabia,” said Qalaa Holdings Chairman and Founder , Dr. Ahmed Heikal , “in that regard , the Egyptian Refining Company ERC – Egypt’s largest private –sector megaproject –is more than 85% complete and we expect to sell the first on-spec product in 2017 as planned . This will significantly increase Qalaa’s consolidated EBITDA in its first full operational year.” Energy is the key sector for Qalaa going forward.
Qalaa’s divestment and deleveraging programs remain on track as Qalaa has booked net gains on the sale of investments of USD 2 million in Q12016 as it divested microfinance company Tanmeyah and Misr Glass Manufacturing. “Since the beginning of last year, Qalaa has deconsolidated or repaid debt of more than USD 270 million, allowing them to streamline operations, reduce operational and financial risk, and strengthen their position ahead of the start of production at the ERC and the signing of new contracts at TAQA Arabia Dr. Heikal added.
Qalaa continues to make concrete, steps toward guaranteeing long-term profitability, releasing insolvent legacy investments and moving to a future in which they are entirely focused on core operations. In the first quarter of 2016, this has seen them register expenses of USD 10.4 million related to discontinued operations. Notably, however losses in the quarter were the result of non-cash charges — in addition to the USD 10 million related to discontinued operations and recorded USD 5 million in consolidated FX losses on the back of the 14% devaluation of the Egyptian Pound against the US Dollar.
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