Qalaa Holdings recorded revenues of EGP 10.4bn in the first quarter (Q1) of 2020, marking a 191% increase year-on-year (y-o-y), it announced in its consolidated financial results for the quarter.

On Wednesday, the company released its consolidated financial results for the first quarter of the current year, which ended on 31 March 2020.

The report added that Qalaa Holding’s top line performance in Q1 of 2020 was primarily driven by the Egyptian Refining Company (ERC) recording EGP 6.8bn on its first full income statement. This came following the ERC’s recognition as an operational asset at the beginning of January 2020, with the company’s revenues making up 66% of Qalaa Holdings’s consolidated top line for the quarter.

Qalaa Holding explained that the growth at the consolidated level was further supported by an 18% y-o-y top line expansion at TAQA Arabia. The growth comes on the back of a solid performance across its gas, marketing, and power divisions and with a growing contribution from TAQA Solar.

Moreover, Nile Logistics also delivered strong results, witnessing a y-o-y revenue increase of 81% in Q1 of 2020 on the back of capacity expansions at the coal/pet coke storage facilities. Nile Logistics has also commenced work on a grain warehouse, and increased efficiencies at its inland container depot.

“The first quarter of 2020 marked a milestone for Qalaa Holding, with the booking of revenues by the ERC, a development that has been years in the making,” said Qalaa Holdings Chairperson and Founder, Ahmed Heikal.

He added, “I am pleased to report that in its maiden quarter, the ERC has been operating at 100% capacity utilisation with all processes running smoothly. Meanwhile, Qalaa’s growth was also supported by continued strong performance at TAQA Arabia and Nile Logistics, both of which are delivering growth and proving resilient in the face of COVID-19. Moreover, at National Printing, the company achieved healthy EBITDA growth during Q1 of 2020, with its performance set to continue particularly with El Baddar’s new plant coming online during the second half of 2020.”

While the recent volatility in the oil market and the narrowing in heavy fuel oil (HFO) to diesel spreads have adversely impacted the refinery’s profitability, the ERC recorded an EBITDA of EGP 442.2#m in Q1 of 2020.

The ERC’s EBITDA contribution pushed Qalaa Holding’s consolidated EBITDA in Q1 of 2020 to EGP 773.2m, registering a strong y-o-y increase of 105%.

Consolidated EBITDA growth also came on the back of strong performances at all of TAQA Arabia’s divisions as well as operational improvements at Nile Logistics and National Printing. Excluding the ERC, Qalaa Holding’s EBITDA would have declined 12% y-o-y to EGP 331.0m in Q1of 2020, on the back of ASEC Holding subsidiaries that were impacted by Egypt’s underperforming cement market. There have also been rising energy costs and a 35-day strike at Al Takamol Cement in Sudan that ended in March 2020. Additionally, exports by the Arab Company for Computer Manufacturing (ACCM), a subsidiary of the ASEC Company for Mining (ASCOM), were negatively impacted by diminished international trade as a result of the novel coronavirus (COVID-19) pandemic.

Qalaa Holdings recorded a net loss after minority interest of EGP 405.1m in Q1 of 2020, compared to a net loss of EGP 154.6m in the same period of the previous year. The decline was driven by the ERC’s loss, before minority interest, of EGP 1.4bn in Q1 of 2020 due to the pressure on HFO and diesel spreads and an overall soft oil market.

“Despite the nationwide curfew and general disruption in economic activity that has resulted from COVID-19, we remain hopeful, as most of our companies continued to post year-on-year growth. At this time, we are prioritising the health and well-being of our more than 17,000 employees across our subsidiaries and we have decided to maintain our full work force with no layoffs at this time,” said Heikal