Qalaa Holdings reported a 62% rise in revenues to EGP 30.3 bn in 1Q 2023,according to its earnings release (pdf). Net income for the period fell 84% from the same quarter last year, largely on the back of one-off gains in 1Q 2022 including EGP 842 mn from debt restructuring at its transportation and logistics segment last year. The company also saw higher interest expenses in 1Q 2023 thanks to rising global interest rates and paid higher taxes in the quarter. Revenue growth in 1Q of this year was driven by strong refining margins at the Egyptian Refining Company (ERC), which accounted for some 77% revenues.

Non-ERC revenues also see growth: Revenues excluding ERC increased 38% y-o-y to EGP 6.9 bn during the January-March quarter. Energy distribution subsidiary TAQA Arabia’s revenues rose 27% to EGP 2.9 bn on the back of a strong performance from TAQA Gas and the increase in fuel prices at TAQA Petroleum. Meanwhile, National Printing’s top line grew 54% to EGP 1.4 bn.

What they said: “Qalaa has kicked off the year with a positive and promising performance, amid a difficult operating environment … The past period has seen us focus on reducing our risk levels, primarily by deleveraging and growing Qalaa’s cash flows,” said Managing Director Hisham El Khazindar.

1Q 2022’s figures revised: The company had originally reported a EGP 584.1 mn loss in the first quarter of last year but has now revised this to a EGP 468.9 mn. This occurred after it reclassified the EGP 1.2 bn FX loss suffered during the EGP devaluation in March 2022 as other comprehensive income, removing it from its net income calculation.

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