Qalaa reports revenues of EGP 9.3 billion in FY17, up 22% y-o-y owing to improved top-line performance at TAQA Arabia and Tawazon and increased competitiveness at ASCOM’s mining subsidiaries; FY17 EBITDA sees a 56% y-o-y increase. ERC is scheduled to begin production in 2019

Net loss after minority interest records EGP 4.7 billion driven primarily by EGP 4.3 billion in what management expects to be the final round of significant impairments, as well as by EGP 434.1 million in losses from discontinued operations

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 year ending 31 December 2017, reporting revenues of EGP 9.3 billion, up 22% y-o-y on the back of strong growth from its energy subsidiaries, TAQA Arabia and Tawazon, as well as ASCOM, its operational platform in the Mining sector. Qalaa booked a net loss of EGP 4.7 billion in FY2017, driven primarily by EGP 4.3 billion in impairments booked during the year, which management expects to be the final round of significant impairments, as well as by EGP 434.1 million in losses from discontinued operations.

“Qalaa’s full-year results reflect the ongoing transformation across our portfolio companies, with several platforms gearing-up for a new growth phase,” said Qalaa Holdings Chairman and Founder Ahmed Heikal. “Solid operational performance saw us deliver a 22% increase in our top-line to EGP 9.3 billion as energy, mining, cement and transportation plays continued to capitalize on the prevailing economic trends and turn new market dynamics into growth opportunities and avenues to create shareholder value.”

“We’re also pleased to announce that Qalaa has reached a restructuring agreement for the Egyptian Refining Company with all stakeholders, including lenders, co-shareholders, and contractors to ensure timely project completion. Qalaa is currently exploring options to potentially increase its indirect ownership stake in this mega project, which will not only transform our company but is also a strategic asset for the Egyptian economy,” Heikal added.

Qalaa recorded substantial growth at the EBITDA level to reach EGP 769.1 in FY17, up 56% y-o-y, with growth being driven by Qalaa’s mining, cement and agrifoods sectors. Meanwhile, major impairments during FY17 included EGP 3.2 billion booked for Africa Railways (RVR), which also added EGP 224.0 million in losses from discontinued operations. Management expects this to be the final round of significant impairments.

On a quarterly basis, revenues grew by 2% y-o-y to EGP 2.5 billion in 4Q17 while impairments and interest expenses weighed down on Qalaa’s bottom-line, resulting in a net loss of EGP 1.3 billion in 4Q17.

“Thanks to a courageous reform program, Egyptian businesses are benefiting from newly found competitiveness and Qalaa’s platforms are now ideally positioned to deliver returns and capitalize on new market dynamics,” said Qalaa Holdings Co-Founder and Managing Director Hisham El-Khazindar.

“These favorable developments that have validated our investment thesis and are affecting all our portfolio companies, along with ERC’s start of production which is earmarked for 2019, leave us confident that 2017 was an inflection point for Qalaa and that 2018 and beyond will witness further improvement in our financial results leading to a positive bottom-line in 2019. We also continue to push forward with our portfolio restructuring strategy, whether through asset sales or initial public offerings, having exited our investment in garment manufacturer DICE through an IPO on the Egyptian Exchange, divested from ASEC Djelfa, and most recently, signed an SPA to exit Designopolis Mall through the sale of our stake in Bonyan in 2Q18,” El-Khazindar concluded.

Qalaa Holdings’ full business review for FY/4Q2017 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
Fax: +20 22 791-4448
Mobile: +20 106 662-0002