As Egypt’s leading private sector energy and utility provider, TAQA Arabia’s EBITDA expanded by 35% year on year (YoY) to EGP 571.1 million in Q3 of 2024.
EBITDA growth for the period came mostly on the back of strong performances at TAQA Gas and TAQA Power. Additionally, increases in fuel and lube prices and volumes at TAQA Petroleum further supported growth. TAQA Arabia is accounted for as an investment in associate using the equity method and revenues are not included in Qalaa’s consolidated revenues, Qalaa Holdings announced in February 11 as it revealed in Q3 of 2024 results.
TAQA Arabia’s net profit grew by 8% YoY to EGP 213.5 million in this period. Bottom-line growth for the quarter was primarily driven by a strong performance at TAQA Gas. Positive contributions from foreign currency-linked power generation prices and the implementation of new photovoltaic projects under TAQA Power, in addition to increases in fuel and lube prices and volumes at TAQA Petroleum, further supported growth.
Meanwhile, the Egyptian Refining Company (ERC) continued to operate above its rated capacity, yet refining margins remain pressured due to the cyclical nature of the business.
ERC recorded a net profit of EGP 173.3 million during the quarter, compared to a net loss of EGP 362.5 million reported in Q3 of 223, mainly driven by the EGP devaluation.
“During the quarter, our results continued to be heavily driven by ERC’s USD-denominated revenue, which expanded strongly year-on-year despite the decline in refining margins witnessed during the period.” said Hisham El-Khazindar, Qalaa Holdings Co-Founder and Managing Director.
Meanwhile, ERC’s receivables from EGPC stood at $131.0 million as of 31 December 2024, and the company has successfully finalized its senior and subordinated debt restructuring as of 20 December 2024.
“After successfully finalizing our Senior Debt Settlement/Restructuring process, as well as the foreign senior debt purchase by QHRI over the past period, I am pleased to announce that as of 20 December 2024, ERC has successfully finalized its senior and subordinated debt restructuring. On that front, ERC remains on track to fully settle its senior debt by Q4 of 2025, after which the company may start distributing dividends, and we remain committed to reducing Qalaa’s risk levels and maintaining a healthy financial position going forward,” added El-Khazindar.
