Qalaa Holdings saw its net income surge to EGP 2 bn in 3Q 2023, over a hundredfold increase from the EGP 16.7 mn recorded in 3Q 2022, driven by gains from a stake sale, according to the company’s latest earnings release (pdf).

ICYMI- APM Investment, a wholly owned subsidiary of Qalaa’s mining arm ASCOM, sold its35% stake in Ethiopia’s Kurmuk Gold Project to the Canadian gold producer Allied Gold Corporation (AGC) last month in exchange for 11.5 mn shares in the latter and USD 65 mn.

The company’s topline rose 11% y-o-y to EGP 26.4 bn in 3Q 2023, primarily driven by the company’s flagship oil refinery, the Egyptian Refining Company (ERC), which accounted for around 74% of total revenues. ERC’s refining margins narrowed in the quarter due to a normalization of oil prices after a spike in 2022, but the plant underwent an overhaul in July that ramped up its output capacity by 6-7%.

Progress made on receivables owed to ERC: ERC’s receivables owed by the state-run Egyptian General Petroleum Corporation (EGPC) have dropped to USD 332 mn, after the latter paid USD 935 mn. The receivables collected have allowed ERC to ramp up its debt repayments.

What’s next: “Qalaa is currently studying several new medium-sized, export-oriented, and predominantly green investments with high local value-added components, to be executed through its subsidiaries,” the release read.

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