Qalaa Holdings subsidiary Egyptian Refining Company (ERC) is planning to invest USD 150 mn to ramp up production levels by 10% over the next three years, Qalaa Chairman Ahmed Heikal told Al Arabiya on Monday. The company’s total output, excluding fuel and losses, recorded 2.3 mn tons in the first half of 2023, according to its earnings releases for the first two quarters (here, pdf and here, pdf).

Another strong year in 2023? The Qalaa chairman is expecting ERC’s revenue to rise almost 25% to hit USD 3 bn in 2023 on the back of increased production and global oil prices. The company’s revenue more than doubled in 2022 to hit EGP 74.8 bn (USD 2.42 bn), according to its 4Q earnings release (pdf). The refinery has posted EGP 44.1 bn (USD 1.4 bn) in revenues during the first six months of the year. Qalaa is yet to publish its 3Q results.

Clearing the debt The refiner will finish paying off its initial loans in 1Q 2025, he told the news outlet, noting that the loans have almost halved to USD 1.25 bn from USD 2.35 bn. ERC has been in talks with its creditors to restructure its debts for several years.

Remember: ERC inaugurated its USD 4.3 bn Mostorod petrochem refinery — the largest private sector project of its kind in Africa — in 2020. It has an annual production capacity of 2.3 mn tons of diesel fuel and 860k tons of high octane fuel.

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