Qalaa Holdings records revenue of EGP 3.5 billion in 2Q 2019, up 8% y-o-y on the back of strong performance at TAQA Arabia; several operational milestones achieved year-to-date across Qalaa’s subsidiaries

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 June 2019, recording an 8% y-o-y climb in revenues to EGP 3.5 billion. On a six-month basis, Qalaa Holdings saw revenues grow 11% y-o-y to reach EGP 6.9 billion in 1H 2019.

  • ERC 100% operational as of September 2019, with 4Q 2019 set to be the first fully operational quarter.
  • TAQA Solar launched operations in February 2019, booking c.EGP 66 million in revenues and EBITDA of c.EGP 60 million in 1H 2019.
  • ACCM launched operations at its third calcium carbonate production line.
  • Nile Logistics’ new grain storage warehouse received its first shipment of grain in September 2019.
  • Qalaa’s consolidated results affected by weak performance at Al-Takamol Cement in Sudan due to political instability and currency devaluation during 2Q19.
  • Barring cement, all of Qalaa’s business segments enjoyed improved performance during the period.

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 June 2019, recording an 8% y-o-y climb in revenues to EGP 3.5 billion. On a six-month basis, Qalaa Holdings saw revenues grow 11% y-o-y to reach EGP 6.9 billion in 1H 2019.

Top-line growth was driven by solid top line performance at TAQA Arabia where rapidly growing gas and power distribution volumes, rising CNG demand and a steady ramp-up of utilization rates at TAQA Solar’s power plant in Benban, Aswan saw TAQA Arabia deliver revenue growth of 33% y-o-y in 2Q 2019.

“Halfway through 2019, Qalaa has made important progress in leveraging the strengths of its portfolio,” said Qalaa Holdings Chairman and Founder Ahmed Heikal. “At TAQA Arabia, the company has entered a new growth phase driven by increased demand for grid-connected natural gas distribution as well as its expansion into renewable energy; growth avenues at the core of Egypt’s energy policies. The successful launch of TAQA Solar’s Benban Plant is already making strong contributions to consolidated revenue and EBITDA, and we continue to expand TAQA Gas’ operations with negotiations to connect a number of new cities within our concession zone. Elsewhere, we continue to make impressive inroads into the growing market for compressed natural gas (CNG).

Following the start of operations at TAQA Solar in February 2019, the renewable energy arm has booked revenues of c.EGP 66 million and an EBITDA of c.EGP 60 million in its five months of operation through to June 2019.

“I am also pleased to report that as of September 2019 all units at our flagship Egyptian Refining Company have become operational with the commissioning of the facility’s hydrocracker unit,” said Heikal. ERC is currently seeing a steady ramp-up of utilization rates and has already supplied the Egyptian General Petroleum Company (EGPC) with over 700 thousand tons of refined oil products, with the fourth quarter of the year being its first full operational quarter.”

“Meanwhile at our mining operations, production has commenced at ASCOM’s third calcium carbonate production line, providing the company with the efficiency and capacity needed to capture market opportunities. During September we have also inaugurated Nile Logistics’ grain storage warehouse at the port of Nubareya, with a capacity of 100k tons per annum. These operational developments across Qalaa’s subsidiaries have significantly strengthened our market position in the respective sectors, and we expect operational gains to drive a strong growth momentum over the coming period,” said Heikal.

Qalaa recorded an EBITDA of EGP 255.8 million in 2Q 2019, a 32% y-o-y decline driven primarily by the company’s subsidiary Al-Takamol Cement in Sudan. In line with management’s expectation during 1Q 2019, rising energy and feedstock costs as well as the devaluation of the Sudanese pound have severely affected Al-Takamol’s profitability in the second quarter of the year. However, management expects Qalaa’s consolidated EBITDA to return to the growth trajectory it has displayed since 2016, driven by the stabilization of the political and financial situation in Sudan, a growing contribution by Nile Logistics with the launch of its grain storage warehouse as well as a larger contribution from TAQA’s solar arm.

“With ERC on the cusp of its first fully operational quarter, Qalaa is on the threshold of a new chapter in its journey as a leader in energy and infrastructure,” said Hisham El-Khazindar, Qalaa Holdings’ Co-Founder and Managing Director. “We are confident that the strategic vision that has led us to this moment will continue to bear fruit for the Group’s results, which are underpinned by solid fundamentals across our business segments. We see this robustness providing a solid hedge against changes in our external environment. To this end, Qalaa continues to implement efforts aimed at streamlining and repositioning our portfolio where we believe such a need exists, with an eye to generating profitable top line expansion across sectors.

Qalaa Holdings booked a consolidated net loss after minority interest of EGP 224.5 million in 2Q 2019 against a net profit of EGP 261.5 million in the same quarter one year ago. It is worth noting that 2Q 2018 figures included a non-cash gain of EGP 919.6 million related to the deconsolidation of Africa Railway’s operational liabilities as well as gains from acquisition and restructuring activities.

Heading into the final quarter of the year, we see Qalaa’s investments across its business segments and its portfolio delivering gradual improvement in the company’s consolidated profitability over the coming period,” El Khazindar concluded.

Qalaa Holdings’ full business review for 2Q 2019 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, Mining and Printing & Packaging. To learn more, please visit

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Qalaa Holdings (S.A.E.)

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