Qalaa swings back to profit in 2Q 2026 as ERC’s refining rebounds

Qalaa Holdings swung to an EGP 2.0 bn net income after minority interests in 2Q 2026, reversing an EGP 1.2 bn loss a year earlier, according to its latest earnings release (pdf). Revenue more than doubled y-o-y to EGP 54.5 bn and recurring EBITDA jumped almost tenfold to EGP 18.2 bn. Over the half, revenue rose 52% to EGP 94.7 bn, and the group booked EGP 185.2 mn in net income after minority interests, against an EGP 1.28 bn loss a year earlier.

ERC did the heavy lifting: Egyptian Refining Company (ERC) revenue jumped 147% y-o-y to EGP 49.4 bn, EBITDA surged to EGP 17.3 bn from EGP 797.4 mn, and net income swung to EGP 12.3 bn from an EGP 3.8 bn loss. Average daily refining margins climbed to USD 4.3 mn from USD 1.2 mn on stronger petroleum-product prices, with the refinery running all 91 days of the quarter against a 32-day planned maintenance stoppage in 2Q 2025.

Beyond the refinery. Revenue excluding the refinery edged up just 2% y-o-y to EGP 5.2 bn, and EBITDA fell 13% to EGP 919.4 mn on margin compression at the cement platform. Still, the rest of the portfolio swung to an EGP 441.9 mn net income from an EGP 739 mn loss.

The debt story keeps improving: ERC fully repaid its senior debt in June — down from an initial USD 2.35 bn — clearing the way for dividends, then paid c. USD 244 mn of subordinated debt in August, with c. USD 559.5 mn left through 2030 and a further c. USD 118 mn due shortly. It also repaid its USD 104 mn shareholder loan to QatarEnergy in 3Q. The deleveraging is feeding through: Qalaa’s bank interest expense fell 22% y-o-y to EGP 1.3 bn. Separately, the group booked another EGP 503.8 mn provision tied to its 2024 debt-settlement agreements, taking the accumulated balance to EGP 9.1 bn, which management expects to write back from 2030 once settlement conditions are met.

REMEMBER- Qalaa is doubling down on ERC. It said earlier this month it will more than double its effective indirect stake to 27.1% from 13% in a transaction that will see QatarEnergy exit the refinery, funded partly by EGP 3.87 bn in fresh equity that lifts paid-up capital to EGP 25 bn from EGP 21.1 bn. The rest goes toward repaying lenders and creditors and exercising the first tranche of its right to buy back c. 5% of Taqa Arabia.