Taking over a new role is always a challenge — especially when you take the reins of one of the region’s largest listed companies just one month before the devaluation. This is what happened to Egypt Kuwait Holding (EKH) Jon Rokk (LinkedIn), who has now led the company for 18 months after taking over the role from Sherif El Zayat back in February 2024. We sat down with Rokk to find out about the tailwinds and headwinds the company has been facing, its plan for the future, and more. Below are edited excerpts from our conversation:

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EnterpriseAM: It’s certainly not been business as usual for companies in the Egyptian market over the last few years, with an FX crisis, devaluation, energy squeeze, and regional conflict. What headwinds have Egypt Kuwait Holding faced in recent years?

Jon Rokk: Well, all of the above. I've been with the company just over a year and a half and joined literally just before the devaluation. Clearly, there was a lot of pressure on our businesses in the sense that we report in USD, so the devaluation impacted results.

But management had been preparing for the devaluation because it was common knowledge that it was a question of when and not if. This is why we reported USD 47 mn in forex gains as a positive on our bottom line. We've shown resilience, we've shown that our portfolio is balanced, and we're not reliant on one particular sector or one particular market. I think this gave us the strength to fight through some of these issues that clearly have impacted the whole region.

E: In terms of year-to-date performance, how has everything been going for EKH and what do you consider operational highlights?

JR: I think we've had a very strong first half of the year, our top line nearly hit USD 400 mn, which is over a third up on last year, and we've maintained our EBITDA margins at around 42%. The net income margin is 26% and net income has hit just over USD 100 mn at USD 101 mn. They're very strong results, and it's due to a lot of hard work that we put in.

We wanted to make sure that this year we do a couple of things really well. We wanted to make sure that each of our investments started focusing on growth and operating performance. And I started what I think of as a housekeeping exercise last year to look at non-core items that were on our balance sheet that were not going to be a longer-term part of our story. So I disposed of an asset in Dubai that was not performing and I sold sovereign bonds we had written off.

E: As a listed company, investment appetite is important and many of the company’s one-off FX gains in the first half of 2024 have been reflected in y-o-y figures in 2025. Do you think everyone understands this?

JR: I can't speak on behalf of the investors, but from the investors I talk to, they're very sophisticated. They're very mature and they spend a lot of time getting to know our business. We've not shied away from being clear in terms of where our income comes from and we recognize the importance of short-term one-offs, but ultimately most shareholders are looking for long-term sustainable value. That's why part of my strategy is to pivot the organization in a way that we have more predictability of our cash flows.

E: Senior figures at the EKH have previously spoken about the importance of geographic and sector diversity of its portfolio. How does this continue to inform the company’s approach?

JR: The key reason for someone like me joining the board was very much because the next chapter in the company is to also look more beyond Egypt. This is partly to derisk our structural exposure to the EGP, but also because there are good opportunities out there.

We’re not just talking about this strategy anymore — we’re delivering it. For example, we have an investment in Saudi Arabia’s Dammam to provide gas for 35 years to an industrial city. It essentially replicates the model that we have here in Egypt with our Nat Energy businesses. It’s been very successful because we know gas networks, we know gas distribution, and we know about optimizing for customers. We delivered the project on time and on budget, and the first customer got their gas in July.

E: Your largest arm by revenue, AlexFert, faced gas flow disruptions earlier this year. Do you see feedstock security continuing to be a concern?

JR: Obviously, natural gas supplies are a countrywide problem. It's not an EKH problem alone. I think the government's done some great work in the last 12 months to try and mitigate those shortages and gaps, but it’s still a challenge for everyone. We've seen some shortages this year, but they're nowhere near as much as last year.

We as an organization, learned from previous shortages. So during shortages in May, we did a lot of planned maintenance that we would have done next year. We planned ahead to use these downtimes in a very proactive and positive way. From discussions that we've been having and what we're able to see, we don't anticipate any more cuts for the rest of the year, especially as we get into the cooler months of the year.

E: There’s been a lot of talk nationally about increasing domestic energy production to help close the supply gap. Will Egypt Kuwait Holding play a role in this?

JR: I’d like to drill more, I’d like to invest more, but the challenge — like for everyone else in the industry — is receivables. It’s a difficult problem for the government, and we understand that and sympathize. But ultimately, if I want to drill more, we need funds to invest in those activities. We have an offshore North Sinai concession that just recently got a ten-year extension and we hope to work with the government to make more investment and drilling viable.

E: Your most recent earnings release described a greenfield project of yours in the UK as a “clean energy opportunity.” Can we expect to see a greater focus on renewables from EKH down the line?

JR: We closed that last weekandwe will be releasing more information soon. I can’t say too much, but it’s in the renewable and chemical recycling space. We're quite excited about the project, but it doesn’t mean we're pivoting 100% into that space.

The key for me is a balanced portfolio. We have expertise in chemicals and in energy, so there's definitely some synergies there. But in terms of when we're looking at new investments, it's all about a balance.

E: Under the company’s international expansion strategy, will the importance of Egypt change in EKH’s portfolio?

JR: Well, I think we can grow both. Ultimately, if we're successful at growing internationally, then as a percentage the revenues and earnings from Egypt would be less comparatively. But the aim is to make sure that we keep on growing our presence and investments in Egypt, whilst at the same time growing externally. This will hopefully support more sustainable growth and upside for shareholders.

E: It’s hard to balance shareholder payouts and investment needs. What’s EKH’s approach to this?

JR: The word balance here is key. We have a duty to the shareholders, they put their trust in us and have expectations. To deliver longer-term growth in both equity and dividends, we need to reinvest. This means not only reinvesting in existing assets, but to invest in new projects. To keep that balance right, we need to successfully follow through with our plans so we can keep shareholders happy and redeploy capital into growth.

E: EKH is not just about geographic diversification, but sectoral diversification too. Looking ahead, what sectors are EKH looking to be involved in?

JR: Right now, we're in manufacturing, chemicals, upstream and downstream energy, non-banking financial services, and insurance — so we’ve got a real spread of activities. Looking ahead, there are a lot of sectors worth looking into both domestically and overseas. We're right in the middle of developing our new five-year business plan and strategy, so that will provide us a bit more focus that we can share with the markets.

We like to look at where we can leverage existing operations, talent, and expertise. Especially when expanding in new counties — like in Saudi Arabia and the UK — I have a lot more confidence launching a project in a familiar segment. But we also need to be agile enough that if a different avenue appears in a sector we don't cover, we can still go for it.

E: Egypt Kuwait Holding will soon undergo a corporate rebrand. Can you tell us more about this rebrand and why you decided to do this?

JR: We're not ready to properly talk about it today, but we're planning to do the formal launch later this year. What I can share with you is that we’ve pivoted the business and are now looking more towards overseas expansion. The name Egypt Kuwait Holding served us very well for the company’s first nearly 30 years, but as we're now in Saudi Arabia and soon in the UK, the geographical nature of the name doesn't fit with the long-term vision of where we're going. It's as simple as that.

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