The Clap:
Egypt Kuwait Holding (EKH) recorded revenues of USD 193.0 million in Q1-24.
What:
According to the company’s earnings release, revenues were primarily “impacted by the softness in urea prices globally following the all-time peak reached in 2022, as well as the devaluation of the EGP towards the end of the quarter”.
The Company invests in 5 main sectors: fertilizers, petrochemicals, gas distribution and power generation and distribution, upstream gas production and insurance and non-banking financial services.
Fertilizers and Petrochemicals:
EKH said that “investments in Sprea Misr have opened up lucrative opportunities, driven by increased production capacities in the existing production lines and the operation of new production lines”.
Meanwhile EKH’s 75.33% ownership in AlexFert enhances the USD denominated revenues of the company.
Energy and Energy related:
EKH enlarged its North Sinai Concession area to 440km2 and drilled 2 new wells
NatEnergy prioritized expanding household installations,
Electricity generator and distributor Karhaba doubled its distribution YoY on the back of being awarded the concession for the 10th of Ramadan South Industrial Developers Zone
Insurance & Diversified:
Bedayti for microfinance saw 32% YoY revenue growth and 18% YoY growth in net profit
Delta Insurance’s growth offset the adverse effects of the EGP devaluation
So What:
Despite the FX crisis in recent years, EKH has remained a stable EGX dividend player, distributing dividends of USD 67 million in 2023.
Now What:
The company is working to start operations at their Nilewood production facility, a partnership with German MDF producer Homann Holzwerkstoffe.
