Egypt Kuwait Holding Company (EKH) on Sunday said it recorded a net profit of $185 million for the full fiscal year of 2024.
EKH posted revenues of $642 million, supported by solid gross and earnings before interest, taxes, depreciation and amortization (EBITDA) margins of 40% and 39%, respectively.
The company recorded a net profit of $185 million, with a 2% point expansion in net profit margin, reaching 29%. Meanwhile, net profit attributable to EKH shareholders stood at $163 million during the same period.
The company successfully maintained profitability margins despite economic challenges, with gross profit and EBITDA margins reaching 41% and 42%, respectively during the period, EKH said in a statement.
Commenting on the Group’s performance and business outlook, EKH Chairman Loay Jassim Al-Kharafi emphasized that EKH successfully navigated operational and economic challenges throughout 2024, attributing this resilience to the Group’s well-defined strategy and flexible business model.
These factors, he said, have enhanced EKH’s ability to achieve sustainable growth and drive long-term success.
Al-Kharafi added that the positive financial results reflect a notable recovery in prices and an increase in sales volumes of core products, reinforcing confidence in the strength and sustainability of the Group’s business portfolio and paving the way for ambitious expansion plans in 2025.
Al-Kharafi affirmed that the Group’s top priorities include boosting foreign currency revenues, expanding exports, and strengthening its financial position, while continuing to contribute to regional economic development.
He also noted that EKH’s first investment in Saudi Arabia is expected to commence commercial operations in the coming months.
Additionally, the Group is advancing its ambitious investment strategy, which includes its first strategic investment beyond the Middle East and North Africa region during the current year, expanding its global operational footprint, Al-Kharafi said.
This reflects EKH’s commitment to managing foreign exchange risk, expanding into high-growth markets, and diversifying its investment portfolio across sectors and geographies, he added.
“Looking ahead to 2025, we will continue to optimize our capital deployment and prioritize investments that align with our strategic objectives, to maximize returns for our stakeholders,” Al-Kharafi said.
Subsidiaries/Fertilizers
Meanwhile, the gross profits of the Alexandria Fertilizers Company (AlexFert) expanded, supported by steady natural gas supply secured by way of recent government interventions and sustained recovery in export urea prices.
In Fiscal Year 2024, revenues recorded $213 million, impacted by natural gas availability, while gross profit and EBITDA margins remained strong at 36% and 44%, respectively, coupled with a 2 percent point year-on-year expansion in the company’s bottom-line margin.
“Looking ahead, the company expects to sustain its strong performance, benefiting from stable natural gas supplies supported by government measures and the continued recovery in global urea prices,” it said in a statement.
Urea prices increased by 8% quarter-on-quarter in 4Q 2024 to reach $364 per ton, while the average global urea price stood at $387 per ton in January 2025.
Petrochemicals
Sprea Misr recorded revenues of 5.84 billion Egyptian pounds in FY 2024, up 19% year-on-year.
Net profit stood at 2.64 billion Egyptian pounds in 2024, reflecting a 2 percent point year-on-year expansion in bottom-line profitability to 45%, driven by gains from interest income and foreign exchange movements.
Sprea Misr is well-positioned to capitalize on the recovery of domestic prices following the devaluation of the Egyptian Pound and increased demand for Sulfonated Naphthalene Formaldehyde (SNF) due to the revival of Egypt’s construction sector.
Utilities Sector
NatEnergy recorded revenues of 5.3 billion Egyptian pounds, a 30% year-on-year increase, while net profit rose 21% to 1.8 billion Egyptian pounds.
Moving forward, NatEnergy is expected to benefit from recent electricity tariff hikes and will continue targeting higher-margin customers. Additionally, Kahraba is investing in a second substation in the 10th of Ramadan industrial zone to support growing energy demand.
Oil and Gas Sector
The North Sinai Offshore Concession reported total revenues of $62 million, reflecting a 7% year-on-year increase.
Meanwhile, net profit amounted to $31 million, with a net profit margin of 50%.
The company continues to deliver strong operational results, supported by its expansion initiatives. The commencement of production at the Aton-1 and KSE2 wells is expected to sustain stable gas production levels at approximately 55 million cubic feet per day (MMSCFD) until the end of 2026.
Additionally, the North Sinai Offshore Concession will benefit from the recent 10-year extension of its Concession Agreement, approved by the Egyptian General Petroleum Corporation (EGPC) during the year, further enhancing the long-term sustainability of its operations.
Non-banking financial services & other diversified sectors
Both Delta Insurance and Mohandes Insurance achieved strong growth, with net profit increasing by 72% and 27% year-on-year, respectively, in Egyptian pound terms during Fiscal Year 2024.
Looking ahead, management expects the insurance sector to maintain its positive trajectory, supported by continued upward revaluation of insured assets, stable premium growth, and a favorable macroeconomic environment, the company said.
Additionally, NileWood is making significant progress toward the commercial launch of its MDF board production line, with operations set to commence in the first half of 2025.
