The Egyptian Refining Company (ERC), which is a subsidiary of Qalaa Holdings Company, has contributed 74% to Qalaa Holdings‘ total revenue during Q3 of 2023.

ERC’s refining margins decreased during the quarter, reflecting a normalization of oil prices after the noticeable increase that occurred in 2022.

In July 2023, ERC went through a planned 17-day shutdown for implementing overhaul and debottlenecking which has boosted production capacity to the tune of 6-7%. A study is also underway to focus on additional debottlenecking in 2029, which is set to boost capacity by another 10%.

Qalaa’s consolidated revenue increased by 11% year-on-year (YoY) to reach EGP 26.4 billion in the third quarter of 2023. Meanwhile, recurring EBITDA recorded EGP 3.9 billion, down from EGP 8.8 billion in Q3 2022 due to lower margins at ERC.

“ERC top-line expanded year-on-year despite both the decline in refining margins during the quarter, and the implementation of a planned 17-day production shutdown for the execution of an overhaul and debottlenecking,” stated Hisham El-Khazindar, Qalaa Holdings’ Co-Founder and Managing Director.