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Egyptian energy and infrastructure investment firm Qalaa Holdings announced its consolidated financial results for financial year 2024, with revenues rising 53 percent year-on-year to EGP 148.9 billion ($2.99 billion), largely driven by foreign currency gains at its flagship asset, Egyptian Refining Company (ERC).
However, Group EBITDA for the 12 months ending 31 December 2024 declined by 6 percent year-on-year (y-o-y) to EGP 21.4 billion ($431 million) mainly as a consequence of the decline in refining margins at ERC, according to a press statement issued by Qalaa on Monday.
On a consolidated basis, net profit after minority interest fell 2 percent y-o-y to EGP 6.4 billion while fourth quarter 2024 net income dropped 91 percent y-o-y due to the absence of last year’s one-off gain from the TAQA Arabia divestment.
ERC’s revenues — denominated in USD — rose 54 percent y-o-y in financial year 24 to EGP 134.9 billion, helped by the depreciation of the Egyptian pound. However, the refinery posted a net loss of EGP 1 billion in the fourth quarter, versus a profit of EGP 641.3 million a year earlier, due to an increase in feedstock prices, a drop in the prices of refined products, and a decline in the quality of feedstock.
Chairman and Founder Ahmed Heikal emphasised the Group’s resilience amid macroeconomic headwinds and reiterated its focus on gradual investment growth, while also advancing debt restructuring initiatives.
While acknowledging the ERC drag, Heikal noted that excluding ERC, the Group’s EBITDA grew 46 percent y-o-y, while net profit excluding ERC rose 4 percent, with most subsidiaries delivering positive bottom-line results.
Capital increase and debt settlement
Qalaa stated that it continues to make progress on its debt settlement and restructuring efforts. An Ordinary General Assembly convened and approved last month the extension of the deadline for capital increase to 15 September 2025.
An Extraordinary General Assembly is set for 17 July to discuss the approval of the proposed capital increase and the capitalisation of dues owed to QHRI [Qalaa Holding Restructuring Ltd] and CCP [Citadel Capital Partners].
Capitalisation of QHRI debt is anticipated to be completed by the end of the third quarter of 2025.
“The approval of the capital increase is expected to significantly de-risk Qalaa’s financial position, as it will transform around $240 million of debt into equity, in alignment with the company’s broader strategic objectives of streamlining its capital structure and enhancing shareholder value,” Heikal said.
With regard to ERC’s debt, Hisham El-Khazindar, Qalaa Holdings Co-Founder and Managing Director said the company’s current net senior debt stands at $228 million, with early repayment targets in place.
“As of 20 December 2024, ERC has successfully finalised its senior and subordinated debt restructuring, and the company has recently completed a repayment of $157.5 million in June 2025,” he stated.
"We remain completely committed to reducing Qalaa’s risk levels and maintaining a healthy financial position going forward,” added El-Khazindar
Qalaa Holdings - formerly known as Citadel Capital - operates across sectors including energy, cement, agrifoods, logistics, mining, and packaging.
(1 US Dollar = 49.69 Egyptian Pounds)
(Writing by Marwa Abo Almajd; Editing by Anoop Menon)
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