Egypt: Qalaa Holdings' revenue in the quarter that ended on 30 June 2015 grew by 33.7% year-on-year to US$267m.
In the first six months of the year, revenue rose by 37.8% to EGP US$515m. Earnings before interest, taxes, depreciation and amortisation (EBITDA) rise by 169% year-on-year to US$72.2m in the first half of 2015. Qalaa's net loss after tax and minority interest improved by 55% to US$10.8m in the second quarter of 2015. In the first half of 2015, its net loss after tax improved by 53% to US$25.1m. This improvement comes despite charges of US$13.1m in the first half of 2015 related to discontinued operations.
Revenue growth was driven by strong performance at TAQA Arabia's fuel marketing arm, which reported 72% top-line growth in the second quarter of 2015 and 73%in the first half of 2015. In the cement division, ASEC Cement's Sudan subsidiary Al-Takamol made a strong contribution to Qalaa's top-line growth. Its revenue grew by 96% in the second quarter of 2015 and by 121% in the first half of 2015. Combined, the energy and cement divisions contributed some 70% of total revenue in the second quarter of 2015.
The first six months of 2015 saw ASEC Holding's sale of its 27.5% stake in Misr Qena Cement, which resulted in a gain from sale of investment equivalent to US$8.56m booked in the second quarter of 2015. The exit from Misr Qena Cement is one of several developments taking place during 2015 that play into Qalaa's risk reduction strategy and its ongoing deleveraging programme. Qalaa's ongoing restructuring efforts continue to reflect positively on its financial performance, with significant improvements at the EBITDA level and a continued narrowing of its bottom-line losses, which improved by 53% year-on-year in the first half of 2015.
Qalaa management has reiterated its strategy for 2015, with its underlining factors being the mitigation of financial risk by significantly deleveraging at the holding and platform company levels, as well as limiting operational risk through the divestment of non-core and non-essential assets while focusing resources on core business and ensuring they have the funding needed to deliver on growth plans.
"Qalaa has repeatedly stressed that deleveraging is one of the company's key strategic goals for 2015 and onward," said Qalaa co-founder and managing director Hisham El-Khazindar. "We remain on track with our divestment programme, the proceeds from which will be utilised to reduce total consolidated debt from the current US$971m, excluding debt associated with Africa Railways and a greenfield megaproject, to around US$639m by the end of 2015."