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Qalaa Holdings incurs EGP 2.5bn loss in 2020

Qalaa Holdings incurs EGP 2.5bn loss in 2020
Revenues grew by 148% to EGP 35.9 billion in 2020
Qalaa Holdings
CCAP
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Cairo – Mubasher: Qalaa Holdings reported net losses of EGP 2.553 billion in 2020, up from EGP 1.135 billion in 2019, excluding minority shareholders’ rights.

The loss increase was primarily due to losses incurred by its 13.1%-owned Egyptian Refining Company (ERC) as a result of the pandemic and the consequent pressure on heavy fuel oil and diesel spreads, according to a bourse disclosure on Tuesday.

Taking into account minority shareholders’ rights, net losses amounted to EGP 9.57 billion last year, compared to EGP 1.52 billion in 2019.

Moreover, Qalaa recorded impairments, write-downs, and provisions related to the pandemic, amounting to EGP 1.012.6 billion last year.

Revenues grew by 148% to EGP 35.9 billion in 2020, compared to EGP 14.5 billion in 2019, driven by the EGP 21.558-billion contribution from the ERC.

Qalaa Holdings’ Chairman and Founder, Ahmed Heikal, said, “Amidst unprecedented market conditions due to the pandemic, we have seen a multitude of operational developments and strategic initiatives across our platform companies that supported our resilience over the course of the year.”

Despite the harsh market conditions, TAQA Arabia was able to deliver an uptick in revenues by 3% year-on-year, driven by growing household conversions and an expansion in its industrial client base that saw increasing gas volumes at TAQA’s gas division in 2020,” he noted.

The standalone financial results showed net losses of EGP 510.3 million in 2020, up from EGP 334.2 million in 2019.

During the first nine months of 2020, Qalaa Holdings recorded net losses of EGP 6.26 billion, compared to EGP 901.23 million in the prior-year period, including minority shareholders’ rights.

Losses attributed to the parent company’s shareholders increased to EGP 1.56 billion in the January-September period, compared to EGP 774.43 million in the year-ago period.