Qalaa reports revenue growth of 38% y-o-y in 3Q2017 and a 182% y-o-y increase in EBITDA to EGP 253.6 million; strong performance comes on the back of increased operational efficiency and portfolio optimization

Revenue growth led by TAQA Arabia, ASEC Cement, ASCOM and Tawazon’s venture into Oman; losses from discontinued operations narrowed significantly to EGP 6.9 million while Net loss posts EGP 311.7 million owing to high interest expense

Qalaa Holdings, a leader in energy and infrastructure (CCAP.CA on the Egyptian Exchange, formerly Citadel Capital), released today its consolidated financial results for the quarter ended 30 September 2017, reporting revenues of EGP 2.47 billion, up 38% y-o-y on the back of strong growth from energy subsidiaries TAQA Arabia and Tawazon, as well as solid performances at ASEC Holding and ASCOM. On a nine-month basis, Qalaa’s top-line recorded EGP 6.87 billion in 9M17, up 28.3% y-o-y.

TAQA Arabia continued to benefit from gradual phase-out of energy subsidies and increase in pricing, while solid waste management company Tawazon’s results were buoyed by higher demand for alternative fuels. Additionally, Tawazon’s newly established Oman-based subsidiary, ENTAG Oman, is delivering solid results having completed works on its first project and with its second award pending government approval. Qalaa’s top-line was also supported by improved performance at ASEC Holding, where a ramp-up in production at Sudan’s Al-Takamol Cement along with higher management fees at ASEC Engineering helped drive the cement sector’s growth in 3Q17. Additionally, mining platform ASCOM continues to reap the rewards of its export competitiveness and the translation of foreign currency proceeds.

“Across our investment portfolio, platform companies are continuously gaining a stronger footing in today’s macroeconomic environment, with year-to-date top-line growth delivered at all of Qalaa’s subsidiaries,” said Qalaa Holdings Chairman and Founder Ahmed Heikal. “Our consolidated revenues rose nearly 40% in the third quarter of 2017 and we are working diligently to extract increased operational efficiencies, improve profitability and translate our on-the-ground success into real value for shareholders.”

“Our efforts thus far have seen us push forward a growth strategy across our subsidiaries, positioning them for further capitalization on current market dynamics and unlocking their full potential. At TAQA Arabia, we are furthering our reach across the country with three new filling stations added year-to-date and a further six to come online in the near term. Meanwhile, Tawazon’s recent venture into Oman is proving successful quarter-on-quarter, with ENTAG Oman making a fast-growing contribution to both revenues and bottom-line,” Heikal added. “We are also building a more comprehensive suite of service offerings by Nile Logistics to strengthen the company’s ability to sign and retain new business and fully leverage its competitive advantage.”

At the EBITDA level, Qalaa recorded a 182% y-o-y increase to EGP 253.6 million in 3Q17, with growth being largely driven by subsidiaries Tawazon and its Omani operation, ASEC Cement and ASCOM.

Qalaa recorded a loss from sale of investment of EGP 103.1 million in 3Q17, following ASCOM’s divestment of its 64.46% stake in Ethiopian mining arm APM Ethiopia to Allied Gold Corp. in July 2017. Meanwhile, losses from discontinued operations narrowed significantly to EGP 6.9 million in 3Q17, down from EGP 119.0 million in the same period last year.

“Qalaa’s push for growth and increased operational efficiency is already bearing fruit and works hand-in-hand with efforts to optimize our portfolio and streamline our investments,” said Qalaa Holdings Co-Founder and Managing Director Hisham El-Khazindar. “Profitability down the income statement is gradually improving, with Qalaa delivering gross margin expansion and a nearly threefold year-on-year improvement at the EBITDA level in the third quarter of 2017. We have also significantly narrowed losses from discontinued operations.”

“While our bottom-line continues to witness pullback from high interest expenses mostly related to USD-denominated debt booked at the holding level, the effect is short-term, and we anticipate a return to profitability once the Egyptian Refining Company comes online, now 95.7% complete,” El-Khazindar added.

Bank interest expense climbed 91% y-o-y to EGP 281.6 million in 3Q17, with the float of the Egyptian pound in November 2016 affecting USD-denominated debt booked primarily at the Qalaa Holdings level.

Qalaa recorded a net loss after minority interest of EGP 311.7 million in 3Q17 versus a net loss of EGP 214.5 million in the same period last year.

Qalaa Holdings’ full business review for 3Q2017 and the financial statements on which it is based are now available for download on


Previous Qalaa Holdings press releases on this subject and others may be viewed online from your computer, tablet or mobile device at

Qalaa Holdings (CCAP.CA on the Egyptian Stock Exchange) is an African leader in energy and infrastructure. Formerly known as Citadel Capital, Qalaa Holdings controls subsidiaries in industries including Energy, Cement, Transportation & Logistics, and Mining. To learn more, please visit

Forward-Looking Statements
Statements contained in this News Release that are not historical facts are based on current expectations, estimates, projections, opinions and beliefs of Qalaa Holdings. Such statements involve known and unknown risks, uncertainties and other factors, and undue reliance should not be placed thereon. Certain information contained herein constitutes “targets” or “forward-looking statements,” which can be identified by the use of forward-looking terminology such as “may,” “will,” “seek,” “should,” “expect,” “anticipate,” “project,” “estimate,” “intend,” “continue” or “believe” or the negatives thereof or other variations thereon or comparable terminology. Actual events or results or the actual performance of Qalaa Holdings may differ materially from those reflected or contemplated in such targets or forward-looking statements. The performance of Qalaa Holdings is subject to risks and uncertainties.

For more information, please contact:
Ms. Ghada Hammouda
CMO & Head of Corporate Communications
Citadel Capital (S.A.E.)

Tel: +20 2 2791-4439
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