Qalaa Holdings, a leader in energy and infrastructure, reported consolidated revenues of EGP 37.2 billion for the first quarter (Q1) of 2025, remaining stable compared to EGP 37.6 billion in the same period last year.
The company recorded a net loss of EGP 43 million, versus a net profit of EGP 7.2 billion in Q1 2024. The decline was mainly driven by a sharp fall in global refining margins and lower product prices, which impacted the earnings of its subsidiary, the Egyptian Refining Company (ERC).
ERC is expected to improve its performance in Q4 2025 and is eyeing several projects and initiatives aimed at enhancing and expanding margins as noted Qalaa Holding in a statement to the Egyptian Stock Exchange.
”In the first quarter of 2025, our results continued to be heavily driven by ERC’s USD-denominated revenue, which contracted slightly year-on-year following the drop in product prices and the decline in global refining margins witnessed during the quarter. Elsewhere across our portfolio, our agriculture and logistics segments continued to leverage their solid investment fundamentals to deliver strong top-line growth,” said Hisham El-Khazindar, Qalaa Holdings Co-Founder and Managing Director.
Qalaa’s portfolio showed strong momentum, with revenues rising 24% year-on-year to EGP 3.9 billion and EBITDA up 26% to EGP 902 million in Q1 of 2025, excluding ERC, and supported by improved performance at Qalaa’s subsidiaries including TAQA Arabia, ASEC Holding, ASCOM, and CCTO.
It is worth noting that TAQA Arabia recorded 66% year-on-year (YoY) net profits after tax to EGP 350 million in the first half (H1) of 2025, the financial consolidated results showed. The company’s sales reached EGP 11.543 billion at the end of June 2025, up 48% from the same period in 2024.
Looking ahead, Qalaa holding’s Chairman, Ahmed Heikal, said, “We will continue executing our growth strategies across diverse platforms. I am confident that the Group can continue to leverage its resilience and agility to navigate market challenges and capitalize on improving macroeconomic conditions . In parallel, we will continue pushing ahead with our strategy of undertaking targeted, incremental investments with the aim of continuously enhancing Qalaa’s investments portfolio.”
Qalaa aims to reduce its consolidated debt to approximately EGP 30 billion in FY 2025 alone, including, but not limited to, repayment of $300 million in ERC senior debt and $240 million in debt owed to Qalaa Holding Refining Investment.
