Oil price hike to play in favour of Egypt's AMOC, Qalaa Holdings – analyst

A 3% hike in oil prices will boost AMOC’s profit in the fiscal year 2019/2020, leading to an 8% increase

  
A refinery is pictured at branch of petroleum company Petrojet in the Mediterranean city of Alexandria

A refinery is pictured at branch of petroleum company Petrojet in the Mediterranean city of Alexandria

REUTERS/Amr Dalsh

Cairo –  The projected increase in oil prices, resulted from the terrorist attacks against Saudi Aramco’s facilities, is expected to benefit Egypt-listed companies, Alexandria Mineral Oils Co (AMOC) and Qalaa Holdings, junior equity analyst at Prime Holding, Nada Wagdy, told Mubasher on Wednesday.

A 3% hike in oil prices will boost AMOC’s profit in the fiscal year 2019/2020, leading to an 8% increase, Nada added.

According to the analyst, the profit of the Egyptian company may reach EGP 1.718 billion in FY19/20.

AMOC reported a 69.7% year-on-year profit decline during fiscal year 2018/2019, registering EGP 450 million.

As for Qalaa Holdings, Nada expected that higher oil prices will positively impact the company’s unit, Egyptian Refining Company (ERC), and contribute to the growth in Qalaa’s consolidated profit.

If the wave of increase in oil prices did not last for more than three months, the impact of which on Qalaa will be minor, Nada remarked.

Earlier in September, a report released by MubasherTrade Research showed forecast that five Egyptian petrochemical firms are most likely to benefit from a possible short-term supply shock.

Translated by: Muhammad Abdul-Wakeel

Source: Mubasher Exclusive

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