Qalaa Holdings, a conglomerate listed on the Egyptian bourse, said on Wednesday it managed to rebound into profits in the third quarter of 2024 after reporting losses in the second quarter.

Releasing its quarterly financial results for period ended 30 September 2024, the firm said its consolidated revenue soared by nearly 75 percent in the third quarter of 2024 to nearly 37.6 billion Egyptian pounds ($743 million) after strong performance by its subsidiaries and a surge in dollar earnings by its refining firm.

Net profits stood at around EGP114.5 million ($2.3 million) in the third quarter against a loss of EGP1.4 billion ($28.5 million) in the third quarter of 2023.

The Group, which owns Taqa Arabia, the Egyptian Refining Company (ERC) and several other firms, said pre-tax profits increased by nearly 53 percent year-on-year to EGP4.8 billion ($98 million) in the third quarter of 2024.

Net profits were nearly 94 percent below those in the third quarter of 2023, when the Group achieved unprecedented profits following the sale of its subsidiary ABM.

“Our solid operational and bottom-line results are a testament to the Group’s strength and resilience, they also reflect the success of our meticulous growth-oriented strategies,” the Company’s founder and chairman Ahmed Heikal said.

He said all but one subsidiary made profits in the third quarter of 2024, with the Group’s refining arm achieving a net income of around EGP173.3 million ($3.5 million). ERC completed the restructuring of its primary and secondary debts in December 2024.

In November last year, Zawya Projects had reported that ERC is planning a $200 million investment for the second phase of its expansion programme, which will increase its refining capacity by 600,000 tonnes per annum.

(1 US Dollar = 50.63 Egyptian Pounds)

(Writing by Nadim Kawach; Editing by Anoop Menon)

(anoop.menon@lseg.com)

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