Cairo – Mubasher: Pharos Research has maintained their ‘Equalweight’ recommendation on Alexandria Mineral Oils Co (AMOC) at a fair value (FV) of EGP 10.504 per share.

AMOC is expected to unveil the details of its $600 million project, which is likely to turn it into a “zero fuel oil” refinery, the research firm added in a recent research note.

“We believe that this project will eventually be a key trigger for AMOC’s stock,” Pharos noted.

AMOC’s profits rose 79% year-on-year to reach around EGP 443 million for the fourth quarter of fiscal year 2017/2018, according to the research note.

Pharos said that the company’s management attributed the growth in net profit to the significant year-on-year growth of EGP 96 million in third-party sales, as well as an EGP 26 million increase in investments from associates from their Alexandria Wax Products Company stake.

The financial indicators of AMOC had previously shown a 24% year-on-year rise in profits for the nine-month period ended March 2018, recording EGP 1.05 billion from EGP 853.5 million.

AMOC also revealed it was looking to generate a net profit of around EGP 707.2 million in FY18/19.