Cairo – Mubasher: Qalaa Holdings is expected to offer stakes in Taqa Arabia and the Egyptian Refining Company (ERC) for sale on the Egyptian Exchange (EGX) in the fourth quarter of 2019, chairman said.

The ERC project located in Mostorod will start operation with its full capacity next May, Ahmed Heikal told Bloomberg TV in an interview.

Heikal noted that almost 98% of the project’s construction work is completed, pointing out that it is set for completion within a month.

Revenues and earnings of the ERC project for the second half of 2019 will be stronger than it is now, he indicated.

He said that using the sulfur-containing fuel starting 2020 will enable the company to achieve robust margin profits.

He projected the company to generate between $1.5 billion and $1.6 billion in earnings before interest, taxes, depreciation, and amortization (EBITDA).

Heikal also expected that oil prices will remain unchanged between $70 and $85 for a while.

Qalaa’s exit from Algeria-based Zahana Cement Co depends on the Algerian government’s approach regarding the matter, he stressed, adding that the company seeks to seal the transaction by the second quarter of this fiscal year.

Qalaa Holdings previously posted it has turned profitable during H1-18 with a consolidated profit of EGP 233.28 million, compared to EGP 3.67 billion in losses in the same period a year earlier.

Revenues grew to EGP 6.2 billion in the six-month period ended June, versus EGP 4.3 billion in H1-17.

On the other hand, standalone losses stood at EGP 2.3 million in H1-18, compared to EGP 102.43 million in the prior-year period.