Hello all you wonderful people, and happy Sunday. Today we have a packed issue for you, with all the latest with the government’s new pricing and payment terms for summer LNG shipments, the state of Turkish investment in Egyptian manufacturing, and a deep dive into the nature of awkwardness.

THE BIG STORY TODAY

#1- Egypt has reportedly set a pricing and payment mechanism for securing LNG supply agreements for the summer months, a government official told Asharq Business. Egyptian Natural Gas Holding Company (EGAS) has sent the conditions to global LNG suppliers in a bid to secure direct contract offers instead of issuing public tenders. Egypt aims to import 155 to 160 shipments of LNG in 2025, according to the outlet.

The conditions:

  • Price cap: Egypt will only consider LNG offers if the price does not exceed USD 14 per mn British thermal units (BTU);
  • Deferred payments: Suppliers must agree to a one-year grace period before receiving payments;
  • Overprice charges: Egypt will pay some USD 2 per mn BTU above the purchase spot for natural gas as an allowance for the deferred payments;
  • Restricting suppliers: No Russian LNG imports will be allowed due to EU sanctions.

Remember: Egypt has reportedly signed agreements with Shell and TotalEnergies to purchase a total of 60 LNG shipments in 2025 for around USD 3 bn, entailing a supply of five shipments per month. The shipments will also operate on a one-year deferred payment schedule.

#2- Real estate giant Palm Hills Developments’s net income rose 105.8% y-o-y in 2024 to EGP 3.25 bn, the company said in its latest earnings release (pdf). During the same period revenues rose 55.7% y-o-y to EGP 27.17 bn, which the company attributed to new sales and delivered units in its Badya, Palm Hills New Cairo, Palm Hills Alexandria, and Crown projects. Sales for the 12-month period came in at EGP 151.0 bn, marking a 153.8% y-o-y increase.

On a quarterly basis, net income came 71.8% y-o-y higher at EGP 914 mn in 4Q 2024, while revenues rose 49.0% to EGP 9.20 bn in the same period.

THE BIG STORY ABROAD

Clashes between pro-Assad forces and forces linked to Syria’s new government continued today, with Syrian government sources telling Reuters that insurgents had begun attacking critical utilities and energy infrastructure over the past 24 hours, with clashes continuing in coastal Latakia Governorate. The clashes, which began Thursday, have seen armed forces from across the country join with government forces to repel attacks by Assad-linked elements in Latakia primarily drawn from Bashar Al Assad’s Alawi sect. The ensuing violence marked by what the newswire characterizes as retributive killing of Alawis in some areas.

AND- Canada’s Liberal Party is set to announce Prime Minister Justin Trudeau’s successor as party head today, as the Liberals gear up for a difficult election later this year amid the escalating trade war with its neighbor to the south. Former central banker and noted political outsider Mark Carney is currently the favorite for the role, while former finance minister Chrystia Freeland is also among the challengers.

** CATCH UP QUICK on the top stories from today’s EnterpriseAM:

  • Elsewedy Electric will build a USD 500 mn subsea cable factory in the newly-announced zone in Dameitta Port. The factory will span 500k sqm and include a 180 meter cable manufacturing tower, with all production earmarked for export.
  • DFM-listed Talabat acquired 100% of Dubai-based online grocery delivery platform Instashop in a USD 32 mn related-party transaction with its Berlin-based parent company and majority shareholder Delivery Hero as part of a restructuring push.
  • Auto sales slip in January: Auto sales in January fell 22% m-o-m to 10.1k, down from December’s two-year high of 13k.

enterprise

*** It’s Inside Industry day — your weekly briefing of all things industrial in Egypt. Inside Industry focuses each Sunday on what it takes to turn Egypt into a manufacturing and export powerhouse, ranging from initial investment and planning to product distribution, through to land allocation to industrial processes, supply chain management, labor, automation and technology, inputs and exports, regulation and policy.

☀️ TOMORROW’S WEATHER- The capital is seeing some clear skies, sunny rays, and much needed warmer temperatures after the long winter cold — with highs of 25°C before dipping to a slight chilly low of 14°C, according to our favorite weather app.

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