Qalaa Holdings recorded revenues of EGP 1.792bn in the third quarter (Q3) of 2016 with the largest contributions coming from energy (45%) and cement (32%), according to a press statement on Thursday.
The statement said that the company also reported a consolidated net loss after minority interest of EGP 207.6m.
The 21% year-on-year improvement in revenues was largely attributable to a 25% increase in Taqa Arabia revenues and 27% increase in ASEC Holding revenues.
Qalaa Holdings chairperson and founder Ahmed Heikal said that Qalaa’s performance during Q3 continues to reflect the resilience of its subsidiaries in the face of an increasingly challenging operating environment.
“Our improvement in Q3 of 2016 was driven primarily by our energy and cement assets, exemplifying the prudence of our strategy to shed non-profitable investments while focusing on our proven winners,” Heikal added.
The statement noted that the flotation of the Egyptian pound is set to directly benefit Qalaa’s energy subsidiaries, primarily at the Egyptian Refining Company (ERC), where its US dollar denominated revenues will lead to a surge in Qalaa’s consolidated financials denominated in Egyptian pounds.
ERC is Qalaa’s $3.7bn Greenfield petroleum refinery in greater Cairo which has reached an overall completion progress of 91% as of September with all heavy equipment installed at the construction site.
Qalaa’s discontinued operations recorded losses of EGP 101.3m in Q3 of 2016, 83% of which are related to Africa Railways.
Formerly known as Citadel Capital, Qalaa Holdings controls subsidiaries in industries including energy, cement, transportation, logistics, and mining.