Qalaa’s consolidated revenues grew 37% y-o-y to EGP 10.2 billion and recurring EBITDA increased by 105% y-o-y to EGP 750.0 million in 2Q21

Strong performance driven by growth and efficiency strategies and reflect improving refining margins on ERC’s results; excluding ERC the Group delivered top line growth of 21% y-o-y to EGP 4.2 billion and recurring EBITDA increased by 26% y-o-y to EGP 454.2 million in 2Q21, supported by positive performance across Qalaa’s subsidiaries

Qalaa’s consolidated revenues grew 37% y-o-y to EGP 10.2 billion and recurring EBITDA increased by 105% y-o-y to EGP 750.0 million in 2Q21; strong performance driven by growth and efficiency strategies and reflect improving refining margins on ERC’s results; excluding ERC the Group delivered top line growth of 21% y-o-y to EGP 4.2 billion and recurring EBITDA increased by 26% y-o-y to EGP 454.2 million in 2Q21, supported by positive performance across Qalaa’s subsidiaries 

Key Operational Highlights

  • TAQA Arabia benefitted from improved market conditions with growing power distribution volumes and increased household natural gas conversion in 2Q21, and increased its number of CNG filling stations to 23 during the period, which drive a near three-fold year-on-year increase in natural gas volumes sold for vehicles to 31.6 MCM in 1H21;
  • National Printing capitalized on easing port restrictions with a marked improvement in exports volumes, and is reaping the rewards of its new state-of-the-art facility;
  • Dina Farms continues to benefit from its facility enhancement initiatives;
  • A key focus area over the next three years will be growing group-wide exports, leveraging the advantage offered to local manufacturers due to the rise in global logistics costs and working to counterbalance the concurrent increase in the price of raw material imports;
  • Qalaa continues to make incremental investments in its portfolio companies; 
  • TAQA Arabia’s newly launched subsidiary, TAQA Water, is expected to deliver tremendous value going forward as the Group expands its presence across the water treatment solutions space;
  • Debt restructuring at Qalaa Holdings and ERC remains a top priority;
  • Continuous adherence to health, safety, and business continuity measures to help manage risks related to COVID-19 and navigate upcoming period of uncertainty without layoffs. 

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 2021. Qalaa recorded a 37% y-o-y increase in consolidated revenues to EGP 10.2 billion in 2Q21, while consolidated revenues excluding contributions from the Egyptian Refining Company (ERC) were up 21% y-o-y to EGP 4.2 billion. At its bottom-line, Qalaa booked a net loss of EGP 401.5 million in 2Q21 compared to a net loss of EGP 712.1 million in 2Q20.

Excluding ERC, revenue growth during the period was primarily driven by TAQA Arabia, which recorded a 27% y-o-y increase in revenues to EGP 2.2 billion in 2Q21. TAQA Arabia’s performance was supported by improved market conditions driving volume growth at TAQA Gas and TAQA Power. Meanwhile, Qalaa’s top line growth was further supported by a 35% y-o-y revenue increase at National Printing in 2Q21 as it reaped the rewards of its new state-of-the-art facility at its El Baddar subsidiary. Additionally, improving export sales and an optimized pricing strategy at Uniboard reflected positively on National Printing’s results during the period.

“I am very pleased with Qalaa’s top line performance over the period, which showcases our ability to deploy effective growth and efficiency strategies even during the most testing times,” said Qalaa Holdings’ Chairman and Founder Ahmed Heikal. “Despite the lingering impact of COVID-19 across our markets, our platforms were able to capitalize on slowly improving market conditions and a gradually easing trade environment, with our consolidated top line delivering a 37% year-on-year increase in 2Q21. Our results came despite an operational stoppage at ERC and were driven by solid performances across our platform companies as well as successfully delivering on multiple operational initiatives during the period.

“At TAQA Arabia, with improved market conditions we captured the growing demand for our services and booked increased household natural gas conversions, delivered higher power distribution volumes and quickly began capitalizing on TAQA Power’s newly inaugurated Sixth of October industrial zone substation. Moreover, we continued our expansion efforts across the compressed natural gas space and more than doubled our CNG stations to 23 in 1H21, with a plan to reach 42 stations by year-end. We are also ideally positioned to continue growing our household gas conversion business. Meanwhile, we are confident that our newly launched subsidiary, TAQA Water, will deliver tremendous value going forward as we look to expand the Group’s presence across the water treatment solutions space.

“At National Printing and ASCOM, an improving international trade environment and easing port restrictions saw both companies deliver higher exports volumes during the period. Overall, the Group booked export proceeds of c. USD 22.7 million in 2Q21, while local foreign currency revenue recorded c. USD 392.5 million*. At Dina Farms, our comprehensive facility enhancement initiatives coupled with the successful launch of our new juice product line reflected positively on our performance in 2Q21. Furthermore, we capitalized on favorable cement prices in Sudan and delivered solid results at Al Takamol Cement, which supported ASEC Holding’s performance during the period.

“It is important to note that the true value of Qalaa’s performing assets is masked due to the adoption of international accounting standards, which account for assets at their historical cost and adjust for impairments, while not taking into consideration any revaluation adjustments,” added Heikal.

“At ERC, despite a 22-day stoppage due to a scheduled maintenance in 2Q21, the refinery’s revenues increased by 52% year-on-year on the back of recovering market conditions. Moreover, I would like to note that ERC’s gross refining margin has gradually improved during the period but is currently hovering at around half of its pre-COVID-19 levels. We are hopeful to see further improvements at the refinery’s margins once market conditions stabilize,” said Heikal.

It is worthy to note that ERC returned to full operational capacity in 2Q21 and recorded an EBITDA of EGP 295.8 million in 2Q21 compared to EGP 6.1 million in 2Q20 due to improving refining margins. While ERC’s margins are significantly improving, they remain at c.50% of their pre-COVID-19 levels. ERC’s technical management (O&M) is contracted to the Egyptian Projects Operations and Maintenance company (EPROM), a wholly owned subsidiary of the Egyptian General Petroleum Corporation (EGPC). 

Excluding ERC, Qalaa would record a recurring EBITDA increase of 26% y-o-y to EGP 454.2 million in 2Q21 on the back of solid EBITDA performances at TAQA Arabia, Dina Farms, ASCOM, and ASEC Holding. 

“Qalaa’s recurring EBITDA growth excluding ERC comes despite significant increases in global freight costs and an unfavourable commodity cycle,” said Hisham El-Khazindar, Qalaa Holdings’ Co-Founder and Managing Director. “Improving profitability amidst these global challenges is testament to the strength of our operational efficiency, pricing, and cost reduction strategies, as well as our restructuring efforts across our platform companies. Qalaa’s EBITDA performance continues to be supported by strong contributions from TAQA Arabia, particularly by its power division following the commissioning of the new Six of October industrial substation. EBITDA performance was also supported by the successful restructuring at ASEC Holding, which recorded a 58% year-on-year increase in EBITDA to EGP 92.8 million in 2Q21. Finally, growing export and local volumes at National Printing and ASCOM also supported profitability for the period.”

“On the debt restructuring front, we continue to make progress toward inking new agreements at the Qalaa Holding level and at ERC, which remain a top priority for us. In parallel, Qalaa will continue to make incremental investments in our portfolio companies with an eye to further unlock value across our extensive and diverse operations.”

“Finally, management remains committed to upholding Qalaa’s comprehensive health and safety measures to protect our c. 17,500 employees who are the key success driver, and we are hopeful that as market conditions continue to improve, and barring further material impacts from the pandemic, we anticipate being able to close out throughout the course of the year on a positive note,” concluded El-Khazindar.

Qalaa Holdings’ full business review for 2Q 2021 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. Qalaa Holdings builds responsible and sustainable businesses that add value to the economies and societies in which it does business. Formerly known as Citadel Capital, Qalaa Holdings controls subsidiaries in industries including Energy, Cement, Agrifoods, Transportation & Logistics, Mining and Printing & Packaging. To learn more, please visit


Forward-Looking Statements

Statements contained in this News Release that are not historical facts are based on current expectations, estimates, projections, opinions and beliefs of Qalaa Holdings. Such statements involve known and unknown risks, uncertainties and other factors, and undue reliance should not be placed thereon. Certain information contained herein constitutes “targets” or “forward-looking statements,” which can be identified by the use of forward-looking terminology such as “may,” “will,” “seek,” “should,” “expect,” “anticipate,” “project,” “estimate,” “intend,” “continue” or “believe” or the negatives thereof or other variations thereon or comparable terminology. Actual events or results or the actual performance of Qalaa Holdings may differ materially from those reflected or contemplated in such targets or forward-looking statements. The performance of Qalaa Holdings is subject to risks and uncertainties.

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Ms. Ghada Hammouda

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Qalaa Holdings

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