QALA FOR FINANCIAL INVESTMENTS 3Q 2022 BUSINESS REVIEW
CAIRO, EGYPT: 15 December 2022
Qalaa Holdings Reports 3Q 2022 Results
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3Q 2022 Consolidated Income Statement Highlights
Revenue
EGP 23,722.2 mn
vs. EGP 12,781.3 mn in 3Q21
EBITDA*
EGP 8,841.2 mn
Vs. EGP 1,205.5 mn in 3Q21
Net Income After Minority
EGP 16.7 mn
vs. EGP (440.7) mn in 3Q21
3Q 2022 Consolidated Income Statement Highlights (excluding ERC)
Revenue
EGP 5,860.8 mn
vs. EGP 4,683.0 mn in 3Q21
EBITDA*
EGP 1,057.1 mn
vs. EGP 520.6 mn in 3Q21
QALAAHOLDINGS.COM | 1 |
3Q 2022 BUSINESS REVIEW
CAIRO, EGYPT: 15 December 2022
Highlights from Consolidated Balance Sheet at 30 September 2022
Consolidated Assets | Consolidated Debt |
EGP 115,623.2 mn | EGP 71,754.3 mn |
At current book value vs. EGP 84,268.4 mn in FY21 | Of which EGP 47,140.7 mn related to ERC |
*Recurring EBITDA excludes one-off selling, general and administrative expenses
Qalaa Holdings, a leader in energy and infrastructure (CCAP.CA on the Egyptian Exchange), released today its consolidated financial results for the third quarter ending 30 September 2022. The Group recorded an 86% y-o-y increase in revenue to EGP 23,722.2 million in 3Q22, and recurring EBITDA of EGP 8,841.2 million compared to EGP 1,205.5 million in 3Q21. The solid performance reflects the success of Qalaa's robust operational and growth strategies across its subsidiaries. Furthermore, improved refining margins at ERC along with higher global commodity prices benefitted the Group's consolidated performance during the quarter.
It is worth noting that ERC's refining margins averaged USD 5.0 million per day in 3Q22 compared to USD 1.2 million per day in 3Q21, as a result of higher oil product prices. Excluding ERC, Qalaa's revenue grew by 25% y-o-y to EGP 5,860.8 million in 3Q22 and recurring EBITDA increased by two-foldyear-on-year to EGP 1,057.1 million in 3Q22.
At Qalaa's bottom-line, the Group remained profitable for the second consecutive quarter, booking a net income after minority of EGP 16.7 million in 3Q22 compared to a net loss of EGP 440.7 million in the same quarter last year. The net profit figure was realized despite an FX loss of EGP 236.2 million booked in 3Q22 on the back of the depreciation of the Egyptian pound.
Financial and operational highlights follow, as do management's comments and overview of the performance of different business units. Full financials are now available for download at ir.qalaaholdings.com.
QALAAHOLDINGS.COM | 2 |
QALAA HOLDINGS
CONSOLIDATED REVENUE
3Q22
87% | |
EGP 23,722.2 mn | |
1% | |
2%5% 4% | |
◼ Energy | ◼ Agrifoods |
◼ Cement | ◼ T&L |
◼ Packaging & | ◼ Other |
Printing |
- Mining
REVENUE PROGRESSION
(EGP mn) | |||||||||
12,781.3 | 23,722.2 | 69,385.1 | |||||||
30,948 | |||||||||
.4 | |||||||||
3Q21 3Q22 | 9M21 9M22 |
RECURRING EBITDA
PROGRESSION (EGP mn)
1,205.5 | 8,841.2 | 2,046.0 | 21,755.5 | ||||||
3Q21 3Q22 | 9M21 9M22 |
3Q 2022 BUSINESS REVIEW
CAIRO, EGYPT: 15 December 2022
-
Qalaa's consolidated revenue grew by 86% y-o-y to EGP 23,772.2 million in 3Q22, primarily driven by ERC's contribution.
ERC's revenue increased more than two-foldyear-on-year to EGP 17,861.4 million in 3Q22, constituting 75% of Qalaa Holdings' top line for the quarter. The performance was driven by higher refined petroleum product prices and improved operational efficiency exemplified by no slowdowns or shutdowns in ERC's operation during the quarter. - Excluding ERC, Qalaa's revenue grew by 25% y-o-y to EGP 5,860.8 million in 3Q22, driven by improved performances across all its subsidiaries.
TAQA Arabia's revenue grew 19% y-o-y during the quarter to EGP 2,863.5 million. Revenue growth was primarily driven by a strong performance at TAQA Petroleum and was further supported by higher power generation and distribution volumes at TAQA Power and CNG volume growth at TAQA Gas.
National Printing delivered a 67% y-o-y top line increase in 3Q22 as it continued reaping the rewards of its new El Baddar state-of-the-art facility. Additionally, higher volume and an optimized pricing strategy at both Shorouk and Uniboard reflected positively on National Printing's results during the quarter. Meanwhile, ASCOM delivered a 55% y-o-y increase in top-line to EGP 357.3 million in 3Q22 supported by higher export proceeds at ACCM as well as increased volume and higher prices at GlassRock.
At ASEC Holding revenue was stable year-on-year, standing at EGP 977.9 million in 3Q22, as Al-Takamol Cement faced a difficult rainy season and political turmoil in Sudan, which affected sales volume. Meanwhile, Dina Farms Holding's revenue reached EGP 327.0 million in 3Q22, up 42% y-o-y backed by improved operations at Dina Farms and ICDP's revenue benefiting from higher prices and direct distribution strategy. Finally, Nile Logistics delivered a 14% y-o-y increase in revenue to EGP 89.9 million in 3Q22. - Qalaa's recurring EBTIDA increased substantially to EGP 8,841.2 million in 3Q22 compared to EGP 1,205.5 million in 3Q21. Profitability was primarily supported by ERC's positive performance during the quarter.
ERC's gross refining margin improved significantly to USD 5.0 million per day versus USD 1.2 million per day in the same quarter last year on account of higher prices of refined petroleum products and improved operational efficiency.
QALAAHOLDINGS.COM | 3 |
RECURRING EBITDA
PROGRESSION (Excluding
ERC)
(EGP mn) | |||||||||
2,722.1 | |||||||||
1,331.5 | |||||||||
1,057.1 | |||||||||
520 | |||||||||
.6 | |||||||||
3Q21 3Q22 | 9M21 9M22 |
NET PROFIT PROGRESSION
(EGP mn)
16.7
(440.7) | (1,320 | (205.9) |
.8) | ||
3Q21 3Q22 | 9M21 9M22 |
3Q 2022 BUSINESS REVIEW
CAIRO, EGYPT: 15 December 2022
Consolidated Recurring EBITDA Progression Chart* (EGP mn)
Consolidated EBITDA | Consolidated EBITDA ex- ERC | 9,025 8,841 | ||||||||||||||
3,890 | ||||||||||||||||
2,085 | ||||||||||||||||
329 | 290 | 303 | 328 | 762 | 367 | 320 | 626 | 750 | 1,205 | 783 | 932 | 1,057 | ||||
320 | 214 | 357 | 509 | |||||||||||||
360 | 454 | |||||||||||||||
303 | 90 | 521 | ||||||||||||||
1Q19 2Q19 Q319 Q419 1Q20 2Q20 3Q20 Q420 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 *ERC started operation in 1Q20
Excluding ERC, Qalaa recorded a recurring EBITDA increase of 103% y- o-y to EGP 1,057.1 million in 3Q22, driven by improved profitability across most of the Group's subsidiaries.
Qalaa's EBITDA excluding ERC was primarily driven by contributions from TAQA, National Printing and Cement. Additionally, ASCOM's export driven businesses delivered a strong performance as they capitalized on their competitive advantage in global markets, with higher volume at ACCM and increased pricing and volume at GlassRock.
- Depreciation and amortization expenses stood at EGP 1,403.3 million in 3Q22, up 25% y-o-y compared to EGP 1,124.9 million in 3Q21, of which EGP 1,124.9 million are related to ERC. The year-on-year increase is primarily due to the depreciation of the Egyptian Pound.
- Bank interest expense recorded EGP 1,487.3 million in 3Q22, up 29% y-o-y versus the EGP 1,152.3 million recorded in 3Q21. The increase was attributed to higher interest rates, reflecting global monetary tightening, along with the impact of FX translations.
- Qalaa recorded an FX loss of EGP 236.2 million in 3Q22 compared to a gain of EGP 82.8 million in 3Q21. The depreciation of the Egyptian Pound was the main reason behind the loss due to the predominantly dollar denominated debts at Qalaa Holdings and its fully owned affiliates.
- Qalaa Holdings recorded a consolidated net income after minority interest of EGP 16.7 million in 3Q22 compared to a net loss of EGP 440.7 million in 3Q21. Net profit was affected by the taxes paid by ERC for the first time since its inception.
- Qalaa's debt restructuring efforts at the holding level are progressing and remain a top priority for the Group. Additionally, ERC's negotiations with its lenders for a full debt restructuring are underway.
QALAAHOLDINGS.COM | 4 |
3Q 2022 BUSINESS REVIEW
CAIRO, EGYPT: 15 December 2022
- Qalaa's consolidated net debt, excluding ERC and ERC-related debt, stood at EGP 12.86 billion as of 30 September 2022 compared to EGP 10.04 billion as of 31 December 2021. The increase was partially driven by exchange rate fluctuation. Meanwhile at ERC, the company paid USD 146.5 million in principal payments in 3Q22, and is on track to become current on all due principal installments by 1Q23.
Net Debt Progression (EGP bn)
55.00 | March 2022: EGP floatation | ||||
50.00 | |||||
45.00 | 43.67* | ||||
42.22 | |||||
40.00 | |||||
Billion | 35.00 | ||||
30.00 | |||||
EGP | 25.00 | ||||
20.00 | |||||
15.00 | 10.04 | 12.86 | |||
10.00 | 4.29 | ||||
3.33 | |||||
5.00 | |||||
0.00 | |||||
Mar'2020 Jun'2020 Sep'2020 Dec'2020 Mar'2021 Jun'2021 Sep'2021 Dec'2021 Mar'2022 Jun'2022 Sept'2022 | |||||
2020 | 2021 | 2022 | |||
All Others | ERC | QH SPVs related to financing ERC Shares |
*EGPC receivables of EGP 10.2 billion were not offset from the debt
QALAAHOLDINGS.COM | 5 |
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Qalaa Holdings SAE published this content on 15 December 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 December 2022 14:22:03 UTC.
