Qalaa Holdings reported a 20% year-on-year (y-o-y) increase in total revenues to EGP 1.7bn in the first quarter (Q1) of 2016, compared to the adjusted EGP 1.4m recorded in Q1 2015.
Despite the increase in revenues, Qalaa Holdings also recorded a net loss worth EGP 242.7m, greater than the EGP 119.1m loss reported last year.
Qalaa Holdings, an African leader in energy and infrastructure, released on Monday its consolidated financial results for Q1 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, TAQA Arabia.
“We are laser focused on our core energy units, Egyptian Refining Company and TAQA Arabia, and will continue to press forward with our divestment programme,” said Qalaa Holdings chairperson and founder Ahmed Heikal.
Heikal added that the Egyptian refining company (ERC) — Egypt’s largest in-progress private-sector megaproject — is more than 85% complete, and that the first on-spec product is expected to be sold in 2017 as planned.
During Q1 2016, Qalaa Holdings concluded the sale of Misr Glass Manufacturing (MGM) as well as microfinance player Tanmeyah.
On the deleveraging front, during the period between Q1 2015 and Q1 2016, Qalaa Holdings deconsolidated EGP 1.3bn of debt through disposals and repaid an additional EGP 1.1bn, both of which play into the reduction of financial and operational risk.
“Our divestment strategy has seen the company generate net gains from the sale of investments, deconsolidate and repay a total of over EGP 2.4bn in debt since the beginning of the fiscal year 2015 to date, and clean up our books in preparation for the start of ERC’s production,” said El-Khazindar
As for the net loss which stood at EGP 242.7m, results were weighed down in part by non-cash charges, including consolidated FX losses of EGP 45m on the back of the 14% devaluation of the Egyptian pound against the US dollar, as well as discontinued operations that are worth EGP 94m.