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The country’s long-term economic prospects remain positive, says Chairman Ahmed Heikal Qalaa Holdings, an Egypt-listed conglomerate with interests in energy, cement and mining sectors, is expected to lower its debt by $1.2 billion as part of its deleveraging strategy launched last year. The company will reach zero bank debt by year-end through debt settlement and restructuring efforts. The debt settlement initiative, including the sale of assets, led Qalaa reporting a 45 percent year-on-year rise in revenues to EGP 37.6 billion ($774.55 million). This was driven by its Egyptian Refining Company’s, a subsidiary, US dollar-denominated income and boosted by growth across most subsidiaries. Net income reached EGP 7.2 billion in Q1 2024 compared to the EGP 73 million a year earlier. As part of the growth strategy, Qalaa will continue small incremental investments in its subsidiaries and expand cash flows, thereby reducing its debt-to-cash flow ratios. The company is currently studying several new medium-sized, export-oriented, and green investments with high local value-added components that will be executed through its subsidiaries. Additionally, Qalaa will focus on growing its exports and leveraging the cost advantage of local manufacturers. Egypt remains an attractive destination for both local and regional investors despite the challenges, said Qalaa Holding Chairman and Founder Ahmed Heikal, adding that long-term economic prospects remain positive. (1 US Dollar = 48.54 Egyptian Pounds) |
