Egypt Kuwait Holding Co. Releases Q1 2015 Earnings ...
EGYPT KUWAIT HOLDING COMPANY EARNINGS RELEASE Q1 2015
Egypt Kuwait Holding Co. Releases Q1 2015 Earnings Results Company reports significant q-o-q improvement of key performance indicators; challenging first quarter on poor natural gas supplies, weak oil prices
Key Highlights of Q1 2015 USD 92.2 mn
USD 29.5 mn
32%
USD 20.3 mn
in Revenues
in Gross Profit
Gross Profit Margin
in Operating Income
22%
USD 25.7 mn
USD 13.3 mn
USD 15.0 mn
Operating Margin
Attributable EBITDA
in Net Income
in Attributable Net Income
Key Highlights of Q4 2014 USD 81.2 mn
USD (0.7) mn
-1%
USD (11.1) mn
in Revenues
in Gross Profit
Gross Profit Margin
in Operating Income
-14%
USD 7.5 mn
USD (12.7) mn
USD 2.4 mn
Operating Margin
Attributable EBITDA
in Net Income
in Attributable Net Income
Group Revenue
14 May 2015 | Cairo | Egypt Kuwait Holding Company (EKHO.CA on the Egyptian Exchange and EKHOLDING on the Kuwaiti Exchange), one of the MENA region’s leading investment companies, reported today its consolidated results for the first quarter of 2015.
(USD Millions) 147.0 81.2
Q1 2014 Q4 2014
92.2
The company reported Attributable Net Income of US$ 15.0 million in Q1 2015 — a 525% improvement over US$ 2.4 million in Q4 2014, although down 34% from US$ 22.9 million in Q1 2014 — on Consolidated Revenues of US$ 92.2 million.
Q1 2015
Comments from the Chairman, Mr. Moataz Al-Alfi Attributable Net Income (USD Millions)
22.9 15.0
2.4 Q1 2014 Q4 2014
Q1 2015
Overall, I am pleased with our financial performance in the first quarter of this year. I see our Q1 2015 results as a testament to our diversification strategy, to our investment theses, and to our ability to recruit and retain global-caliber management. Sprea Misr continues to outperform our expectations, reporting Net Profit of US$ 4.2 million, a drop of 3.0% from Q4 2014, and 2.1% from Q1 2014. Revenue growth was strong, however, at 15.8% and 16.7% y-o-y and q-o-q, respectively, while Gross Profit Margin rose to 30%. I see Sprea as serving as a clear example of what management talent can accomplish in an industry that is subject to significantly lighter state regulation than our other business units. The Egyptian Hydrocarbons Corporation, meanwhile, is in the final stages of provisional commissioning at its greenfield mininggrade ammonium nitrate plant. Looking to our NatEnergy businesses, NatGas posted an almost 80% growth in EBT on both income growth and improved management of the treasury function (generating new interest income in the process), complemented by a decrease in SG&A costs. Meanwhile, Kahraba outperformed budget expectations reporting significant revenue and net profit growth, while plans to expand capacity are
EGYPT KUWAIT HOLDING COMPANY - EARNINGS RELEASE Q1 2015
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EGYPT KUWAIT HOLDING COMPANY EARNINGS RELEASE Q1 2015
on-track. In short, NatEnergy’s performance has been quite strong and given its solid fundamentals and long-term potential, we intend to increase our stake in this dynamic business. The Egyptian Tankers Company, meanwhile, witnessed a strong recovery in Q1 2015, driven by the positive correlation between low oil prices and escalating tanker rents. This stems from the global trading houses choosing to purchase oil at low prices and store it, in tankers, to sell when prices recover. Accordingly ETC realized US$ 2.7 million in Q1 2015, recording 232% growth compared to Q1 2014 Our diversified businesses likewise performed quite well, with BMIC turning in 60% growth in production year-on-year, and the segment overall contributing US$ 10.6 million to the Group’s consolidated financials. That said, the outsized impact on our operations of three exogenous forces beginning in fall 2014 sees me comparing our results this quarter not to the same three-month period of last year, but rather to Q4 2014. On a year-on-year basis, our results are, at best, mixed due to the impact of crippling natural gas shortages, low oil prices and a soft cement market. Quarter-on-quarter, however, our companies have proven they have management teams able to cope with and — where technically feasible, adapt to —changing market realities. Indeed, our ability to report positive returns for a period in which AlexFert, traditionally a core contributor to revenue, operated only 15 days of the 90 working days available (and in which our pricing strategies for more than one core company were impacted by market conditions out of our control) is, to my mind, a real testament to the strength of our diversification drive. Shortages at AlexFert come despite government assurances that we would receive 75% of natural gas needed, although I should add that we are cautiously optimistic that gas availability will improve given the import of LNG in May and the new cargo expected in August. Looking ahead, we will continue to manage for growth heading into the rest of the year while grappling with challenging macro conditions. These include a lack of clarity on the potential availability of gas (the supply of which has been limited in Q2 to-date), on the availability of hard currency, and on oil prices. Come what may, I have no doubt in our team’s ability to lead our companies through this period of economic recovery, positioning us to take advantage of any creativity in government policymaking — such as the green-light to private-to-private natural gas sales — and the expansion in the coming years of Egypt’s energy and natural gas supplies.
EGYPT KUWAIT HOLDING COMPANY - EARNINGS RELEASE Q1 2015
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EGYPT KUWAIT HOLDING COMPANY EARNINGS RELEASE Q1 2015
Fertilizers & Petrochemicals
48%
EKH has investments in two operational companies in the Fertilizers & Petrochemicals Segment: Alexandria Fertilizers Company (AlexFert) and Sprea Misr for Production of Chemicals & Plastics Company. A third investment, the Egyptian Hydrocarbon Corporation (EHC,) is a mining-grade ammonium nitrate manufacturing startup that began commissioning in early 2015. The company’s Fertilizers & Petrochemicals investments encompass products ranging from urea, ammonium nitrate and melamine to formaldehyde and liquid and powder glue. With more than 10 years of nitrogen fertilizer operational expertise, EKH has targeted investments with access to key export markets including the United States and Europe, diverse products across several industries, and strong cashflow generating businesses.
of Group Revenues in Q1 2015
Revenues (USD Millions) 78 53
44
Fertilizers & Petrochemicals in US$ ‘000 unless otherwise indicated Q1 2014Q4 2014
Q1 2015
Revenues
Q4 2014 52,434
Q1 2015 43,968 17%
Gross Profit Margin
44%
25%
EBITDA Margin
42%
-10%
23%
21,042
(8,435)
1,961
27%
-16%
4%
10,633
(485)
3,363
Net Profit Net Profit Margin
Total Fertilizer Sales
Q1 2014 77,839
Net Profit attributable to EKH
(Tons) 181,410 112,540 70,119
Q1 2014 Q4 2014
Q1 2015
Overall, the Fertilizers & Petrochemicals segment reported significant decreases in revenues both quarter-on-quarter (down 16.4%) and year-on-year (down 56.5%) as a strong performance at Sprea Misr was insufficient to offset challenges at AlexFert. Net income, although down 63.4% y-o-y was a significant improvement over the previous quarter. AlexFert reported Q1 2015 revenue of US$ 19.3 million and a gross loss of US$ 2.2 million, both a significant drop y-o-y, although gross loss—while down dramatically y-o-y—is a significant improvement over a Q4 2014 gross loss of US$ 12.8 million. Q1 2015 also marks only the second quarter in its history in which AlexFert has declared a loss, due entirely to a severe shortage of natural gas despite government assurances of 75% supply in the quarter. In total, the company was operative only 15 days in Q1, and even as production plummeted, the prices of urea on the domestic market are at their lowest levels in five years at US$ 280-290 per ton, influenced by both domestic price controls and sagging global urea prices. Looking ahead, management is hopeful that better allocations of natural gas may be available in the remainder of the year as imports begin, although there are no guarantees that the state will not maintain its current policy of cutting supply to industry to ensure power stations are stocked. Even if that policy changes on increased availability, management expects the third quarter — peak electricity consumption season — to see shortages. Accordingly, a real recovery of supply or even visibility on potential utilization rates are unlikely before the fourth quarter. Even as management copes with scarcity of supply, feedstock costs have risen, from US$ 4 per MMBTU in Q1 2014 to US$ 4.50 per MMBTU currently following the price hikes implemented with the July 2014 energy reforms. At the other end of the spectrum, Sprea Misr outperformed our expectations, reporting revenues of US$ 24.7 million in the quarter, a 17% y-o-y increase; notably in EGP terms, Sprea’s revenue posted a 24% y-o-y increase. Net profits inched up slightly as low methanol prices offset the impact of the expiration of its tax holiday in Q4 2014. Sprea’s Formica plant is doing very well, with a double digit margin, and management is optimistic that it will maintain and, potentially, improve margins going forward.
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EGYPT KUWAIT HOLDING COMPANY EARNINGS RELEASE Q1 2015
The success of the Formica plant is largely driven by its ability to secure raw materials and its placement in the market as an import-substitution play. The shortage of US dollars in the market allows Sprea to exercise a very beneficial pricing strategy and pursue market share simultaneously. Building on the success of this plant, Sprea has expanded into the wood sheets business, manufactured with Formica sheets and imported wood. This final product is higher up the value chain and will command strong margins. Sprea will continue to explore organic growth options for this business. Among those is the coming launch of sulfonated naphthalene formaldehyde production, on-track to begin in 1Q16. Sulfonated naphthalene formaldehyde is a key additive for ready-mix cement. This additive, which allows ready-mix to dry faster and smoother, is currently not produced in Egypt, and given the relatively low CAPEX required to start operations, Sprea will be positioned as a costeffective local supplier ready to capitalize on growth of the cement and real estate industries.
Energy & Energy-Related
39% of Group Revenues in Q1 2015
Revenues (USD Millions) 56
30
Q1 2014 Q4 2014
Egypt Kuwait Holding has investments in three companies in the Energy and Energy-Related Segment: NatEnergy, Tri-Ocean Energy (TOE) and the Egyptian Tanker Company (ETC). EKH builds and operates gas distribution networks in Egypt through its 100%-owned subsidiary NatEnergy, which covers a wide spectrum of activities, including the transportation of natural gas to power stations and the independent production of power. The company’s energy investments also cover oil and gas exploration and production through TOE — which enjoys access to a significant reserve potential spread across Egypt and South Sudan — and local and global marine transport of crude oil and petroleum products through ETC. Tri-Ocean recently finalized an acquisition that sees it enter into the upstream gas sector as a developer and operator for the first time.
36
Energy & Energy-Related in US$ ‘000 unless otherwise indicated Revenues Q1 2015
Q1 2014 55,845
Q4 2014 30,015
Q1 2015 35,636
Gross Profit Margin
38%
-16%
34%
EBITDA Margin
42%
-18%
34%
5,564
9,830
1,565
Net Profit % Margin Net Profit attributable to EKH
10%
33%
4%
5,676
7,087
1,099
Crude Production
Q1 2014 Q4 2014
403,931
258,931
332,042
(BOE)
In the first quarter of 2015, the Energy & Energy-Related segment reported a 19% increase in revenues over Q4 2014, but a 36% decrease over the same period of last year. Net Profit reported significant declines both q-o-q and y-o-y, largely driven by difficulties at Tri-Ocean. Specifically, oil prices in the US$ 40-range in the quarter saw Tri-Ocean report a 42% drop in revenues year-on-year. Indeed, the oil and gas environment in Egypt in general has been sufficiently challenging to prompt Beach Energy is exiting Egypt altogether. Further to the south, our South Sudanese oil operations are running smoothly and management is keeping a watchful eye on political developments in the region.
Q1 2015
While its oil production activities are lagging, the outlook for Tri-Ocean’s gas concession (Offshore North Sinai) is considerably brighter. Average daily production dropped to c. 22 mm cubic feet per day as the company drills new wells. Production at ONS is on-track to ramp up gradually, rising close to four-fold through the course of the year to approximately 80 mmcf/d. Looking ahead, the company is augmenting Tri-Ocean’s management team with international talent, in preparation for the ultimate liberalization of the Energy industry and the opportunities inherent in such a development.
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EGYPT KUWAIT HOLDING COMPANY EARNINGS RELEASE Q1 2015
Meanwhile, NatGas is performing very efficiently and returning strong results, with an 18% y-o-y increase in Net Profits and a 19% Net Profit Margin. Key drivers of this improvement are strong improvements to income from customer service on state-regulated contracts as well as a strong uptick in revenues from contracts with the private sector. The company has also made strides in its management of the treasury function (generating new interest income in the process), complemented by a decrease in SG&A costs. Kahraba, despite being very tightly regulated by the state, has succeeded in turning a 61% improvement to Revenues and 18-fold growth of Net Profit. The division’s Net Profit Margin stands at 16%. Plans to triple capacity at this plant are on-track, with management having secured the necessary approvals, land, and gas supply contracts. Looking ahead, management is very optimistic about the electricity business in Egypt, which is the only sector in the country with a clear five-year pricing plan. Kahraba is very open to expansion opportunities higher up the generation chain, particularly if opportunities to lock-in gas supplies directly from the private sector were to present themselves.
Diversified
14% of Group Revenues in Q1 2015
Net Income (USD Millions) Q1 2014
Q4 2014
Q1 2015 10.6
6.6
-4.2
Egypt Kuwait Holding’s Diversified segment includes a wide array of strategic investments, from cement production, telecommunications and infrastructure to cooling systems and insurance. In line with the company’s strategy to invest in local businesses with large and defensible market positions, EKH owns c.30% of the Building Materials Industries Company (BMIC) in Egypt, a country home to the largest cement market in Africa with total consumption of c. 50 mtpa. Other group assets in the sector include Delta Insurance, Al-Shorouk for Melamine and Resins, Globe Telecommunications, Gas Chill and Bawabet al Kuwait Holding Company. In 1Q15, the Diversified segment reported a net profit of US$ 10.6 million providing a much-needed boost to the Group’s bottom line. The improvement in the contribution of the Diversified companies to Net Profit underscores the soundness of both our team’s investment picks and of our underlying investment strategy. For our cement company, BMIC, the top-line dropped a slight 5%, in line with a country-wide decrease in cement prices. Meanwhile, COGS increased year-on-year as the price of mazot rose with energy prices in July 2014; management attributes the company’s use of mazot as key to BMIC’s good utilization rates compared with industry averages. BMIC continued to benefit from a good geographical distribution mix, as pricing varies not by product, but by location of sales. To lock in its energy supply going forward, BMIC is on track to complete its conversion to coal-fired generation by Q2 2016. As do other participants in the market, BMIC views coal-fired power as likely to be more reliable in the medium-term.
Recent Corporate Developments Final Stages of Provisional Commissioning at Egyptian Hydrocarbon Corporation The Egyptian Hydrocarbon Corporation (EHC)’s greenfield plant is in the final stages of provisional commissioning. EHC is a mining-grade ammonium nitrate (MGAN) manufacturing start-up located in the 9th Industrial Zone of the Ain Sokhna area south of the Suez Canal. Developing Leaders Program In a nod to the fundamental importance of people to our businesses, our Human Resources Department has put into place a Developing Leaders Program for EKH and our subsidiaries that will better allow management to identify top performers and help them grow their careers with the Group.
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EGYPT KUWAIT HOLDING COMPANY EARNINGS RELEASE Q1 2015
This program is a key step in our institutionalization drive, as we have simultaneously implemented a number of employee-relations initiatives and training programs.
Outlook For the remainder of 2015 and looking ahead to 2016, management is hopeful (but not necessarily optimistic) that the recent rebound in oil prices to c. US$ 60 will prove sustainable, and that the government will manage to make natural gas more available to the country’s fertilizers manufacturers. Management considers it unlikely that urea prices will rise in the near future; however, the outlook for this segment is reasonably secure — provided that gas becomes available—as the allowable price for sales on the domestic market, while low, are quite close to international prices. In the meantime, management is confident that as Egypt’s economy continues to grow, the company’s performance will continue to reflect the benefits of diversification.
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EGYPT KUWAIT HOLDING COMPANY EARNINGS RELEASE Q1 2015
About EK Holding Egypt Kuwait Holding Company (EKHO.CA on the Egyptian Exchange and EKHOLDING on the Kuwaiti Exchange) is one of the MENA region’s leading investment companies with a diversified portfolio of investments that spans the region in sectors that include fertilizers and petrochemicals, energy, cement production, insurance, information technology, transport and infrastructure. Established in 1997 by a consortium of prominent Kuwaiti and Egyptian businessmen including our former Chairman, the late Nasser Al-Kharafi, the company has flourished during the past decade as the countries of the Arab world began to liberalize their economies and open doors for private sector investments in strategic sectors that had once been off limits.
INVESTOR RELATIONS CONTACT For further information, please contact:
STOCK SYMBOL EKHO.CA
Haitham M. Abdel Moneim Egypt Kuwait Holding, Co. Senior Investor Relations Manager [email protected]
CAPITAL Issued and Paid-In Capital: USD 243.9 mn Number of Shares: 975.6 million shares Par Value: USD 0.25 per share
14 Hassan Mohamed El-Razzaz St. (Previously Nawal St.) Dokki, Giza Tel (Direct) : +20 2 333-633-00
Forward-Looking Statements Statements contained in this document that are not historical facts are based on current expectations, estimates, projections, opinions and beliefs of Egypt Kuwait Holding Company (EKH). Such statements involve known and unknown risks, uncertainties and other factors; 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 EKH may differ materially from those reflected or contemplated in such targets or forward-looking statements. The performance of EKH is subject to risks and uncertainties.
EGYPT KUWAIT HOLDING COMPANY - EARNINGS RELEASE Q1 2015
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EGYPT KUWAIT HOLDING COMPANY EARNINGS RELEASE Q1 2015
Summary Income Statement (in US $) Energy & Energy Related Revenues % Contribution COGS Gross Profit % Margin
Q1 2014
Q4 2014
Q1 2015
55 844 840 38% 34 630 267 21 214 573 38%
30 015 323 37% 34 832 604 (4 817 282) -16%
35 635 688 39% 23 425 710 12 209 978 34%
Fertilizers & Petrochemicals Revenues % Contribution COGS Gross Profit % Margin
77 839 065 53% 43 720 205 34 118 860 44%
52 818 609 65% 39 122 436 13 696 173 26%
43 968 386 48% 36 351 189 7 617 197 17%
Diversified Revenues % Contribution COGS Gross Profit % Margin
13 413 826 9% 2 216 637 11 197 189 83%
(1 594 560) -2% 7 986 012 (9 580 572) 601%
12 670 156 14% 2 988 134 9 682 022 76%
Total Revenues1 COGS Gross Profit % Margin
147 097 731 80 567 109 66 530 622 45%
81 239 372 81 941 052 ( 701 681) -1%
92 274 230 62 765 033 29 509 197 32%
Selling Expenses G&A Net Provisions Other Expenses
3 053 413 12 784 970 198 772 16 763
2 905 069 14 858 902 (27 010 292) 19 666 742
1 942 980 11 252 319 (4 139 452) 84 944
Operating Income % Margin
50 476 704 34%
(11 122 102) -14%
20 368 406 22%
Interest Net FX Gain / Loss Capital Gain Other Income
(5 779 351) 440 804 74 005 (53 845)
(2 476 059) (877 873) 2 255 303 2 080 986
(3 253 821) (1 323 654) 16 204 639 027
Net Income before Tax Income Tax Deferred Tax
45 158 317 8 089 443 (440 589)
(10 139 745) 1 744 918 823 850
16 446 162 3 414 678 (335 476)
Net Income from Continued Operations Gain (Loss) from Discontinued Operations Net Income Non-Controlling Interest Attributable Net Income
37 509 463 37 509 463 14 608 813 22 900 650
(12 708 512) (12 708 512) (15 095 597) 2 387 085
13 366 960 13 366 960 (1 666 179) 15 033 139
Total revenues reported here differ from those in the company’s Consolidated Financial Statements in that they specifically exclude the results of EKH’s low-margin oil-trading business, which artificially skew margins if included. 1
EGYPT KUWAIT HOLDING COMPANY - EARNINGS RELEASE Q1 2015
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EGYPT KUWAIT HOLDING COMPANY EARNINGS RELEASE Q1 2015
Summary Balance Sheet (in US$)
Q1 2015
FY 2014
Fixed Assets (Net) & Projects under Construction
291 384 410
299 332 036
E&P Assets
474 273 132
461 156 743
Investments in Associates
154 625 914
134 474 361
Investments Available for Sale
142 002 656
140 048 833
Other long-term Assets
122 333 477
129 035 543
1 184 619 589
1 164 047 516
Cash
305 861 512
372 675 357
Investments for Trading
241 461 616
204 722 147
Total Receivables & Other Debtors
193 324 746
187 130 178
80 610 656
81 133 078
Total Long-Term Assets
Inventory & Work in Progress Assets held for Sale
1 700 002
1 700 002
Due from EGPC
12 367 302
18 965 439
Investments in Treasury Bills
16 162 468
-
Total Current Assets Total Assets Bank Overdraft and STL
851 488 302
866 326 201
2 036 107 891
2 030 373 717
233 570 306
216 530 511
Due to Suppliers and Sub-Contractors
63 309 562
57 727 936
Due to EGPC
47 399 712
39 950 261
Provisions
11 557 248
16 324 698
Debtors and Other Credit Balances
236 457 128
186 760 891
Total Current Liabilities
592 293 956
517 294 297
Long-Term Loans
181 186 664
199 975 146
Other Long-Term Liabilities
1 021 611
1 008 832
Due to EGPC
5 969 044
8 813 029
Provisions
4 070 000
4 070 000
35 146 247
35 735 129
Total Long-Term Liabilities
227 393 566
249 602 136
Paid-in Capital
243 914 564
243 914 564
Reserves
188 292 291
188 292 291
(154 840 985)
(143 723 798)
Deferred Tax Liability
Fair Value Reserve Retained Earnings
567 672 690
590 484 370
Translation Adjustments
(49 168 689)
(43 719 971)
Treasury Stocks
(7 121 774)
(7 121 774)
Parent's Shareholders' Equity
788 748 097
828 125 682
Non-Controlling Interest
427 672 272
435 351 602
Total Shareholders' Equity
1 216 420 369
1 263 477 284
Total SHE + Total Liabilities
2 036 107 891
2 030 373 717
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EGYPT KUWAIT HOLDING COMPANY EARNINGS RELEASE Q1 2015
Summary Cash Flows (in US $)
Q1 2015
Q1 2014
16 446 162
45 158 316
Depreciation & amortization of property, plant and equipment and other non-tangible assets
7 446 706
7 241 283
Exploration & development assets depletion
5 136 753
6 403 017
(1 932 779)
(1 691 674)
Cash flows from operating activities Net profit for the year before income tax Adjustments for:
Company's share of profits of associates Unrealized gain on held for trading investments Financing expenses Interest income Gain on sale of fixed assets Provisions no longer required Provisions other than depreciation Impairment loss on debtors and other debit balances Operating profit before changes in assets & liabilities available from operating activities Change in held for trading investments
(573 118)
(180 721)
7 669 637 (4 415 816)
7 744 614 (1 965 263)
(16 204)
(74 005)
(4 153 766)
-
14 314
198 772
84 944 25 706 833
16 763 62 851 102
(36 166 351)
(23 531 159)
Change in trade & notes receivable Change in debtors & other debit balances
3 572 183 (9 206 054)
48 626 386 (15 981 713)
Change in inventories Change in work in progress
4 271 440 (3 749 018)
1 69 322 (5 241 586)
Change in suppliers & subcontractors Change in creditors & other credit balances
5 581 626 20 549 357
(36 835 807) 73 445 925
4 605 466 31
1 882 012 (33)
Change in Egyptian General Petroleum Corporation Change in blocked deposits Change in derivative financial instruments Provisions used Interest & financing expenses paid Net cash available from (used in) operating activities
-
(12 500)
(212 868)
(277 266)
(9 026 274)
(8 789 020)
5 926 371
97 826 663
4 337 734
2 020 029
Cash flows from investing activities Interest income received Payments for acquisition of fixed assets & projects under construction Payments for acquisition of exploration & development assets Proceeds from sale of fixed assets
(1 451 610)
(799 988)
(18 253 142)
(2 787 821)
124 033
80 128
Proceeds from Egyptian General Petroleum Corporation Payments for acquisition of available -for- sale investments
8 028 414 (14 354 197)
1 765 311 (8 223 112)
Payments for acquisition of investments in associates Payments for investments in Treasury bills more than three months Net cash used in investing activities
(18 379 135) (5 978 477) (45 926 677)
(7 945 453)
Repayment of long-term loans & bank facilities
(53 122 035)
(60 986 776)
Proceeds from long-term loans & bank facilities
38 697 960
36 767 425
Proceeds from short-term loans & bank facilities Repayment of short-term loans & bank facilities
5 455 580 (181 722)
(7 201 319)
Proceeds from bank overdraft Repayments for minority interests
7 142 691 (787 500)
55 154 994 -
(5 400 037) -
(28 146 152) (4 622 731)
Dividends paid to employees and board of directors Net cash used in financing activities
(10 568 815) (18 763 928)
(12 079 948) (21 114 507)
Foreign currency translation differences Net change in cash and cash equivalents during the year
1 875 523 (56 888 711)
4 487 611 73 254 314
Cash and cash equivalents at beginning of the year Cash and cash equivalents at end of the year
372 351 161 315 462 450
190 735 319 263 989 633
Cash flows from financing activities
Minority Interests Dividends paid
EGYPT KUWAIT HOLDING COMPANY - EARNINGS RELEASE Q1 2015
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Egypt Kuwait Holding Co. Releases Q1 2015 Earnings Results Company reports significant q-o-q improvement of key performance indicators; challenging first quarter on poor natural gas supplies, weak oil prices
Key Highlights of Q1 2015 USD 92.2 mn
USD 29.5 mn
32%
USD 20.3 mn
in Revenues
in Gross Profit
Gross Profit Margin
in Operating Income
22%
USD 25.7 mn
USD 13.3 mn
USD 15.0 mn
Operating Margin
Attributable EBITDA
in Net Income
in Attributable Net Income
Key Highlights of Q4 2014 USD 81.2 mn
USD (0.7) mn
-1%
USD (11.1) mn
in Revenues
in Gross Profit
Gross Profit Margin
in Operating Income
-14%
USD 7.5 mn
USD (12.7) mn
USD 2.4 mn
Operating Margin
Attributable EBITDA
in Net Income
in Attributable Net Income
Group Revenue
14 May 2015 | Cairo | Egypt Kuwait Holding Company (EKHO.CA on the Egyptian Exchange and EKHOLDING on the Kuwaiti Exchange), one of the MENA region’s leading investment companies, reported today its consolidated results for the first quarter of 2015.
(USD Millions) 147.0 81.2
Q1 2014 Q4 2014
92.2
The company reported Attributable Net Income of US$ 15.0 million in Q1 2015 — a 525% improvement over US$ 2.4 million in Q4 2014, although down 34% from US$ 22.9 million in Q1 2014 — on Consolidated Revenues of US$ 92.2 million.
Q1 2015
Comments from the Chairman, Mr. Moataz Al-Alfi Attributable Net Income (USD Millions)
22.9 15.0
2.4 Q1 2014 Q4 2014
Q1 2015
Overall, I am pleased with our financial performance in the first quarter of this year. I see our Q1 2015 results as a testament to our diversification strategy, to our investment theses, and to our ability to recruit and retain global-caliber management. Sprea Misr continues to outperform our expectations, reporting Net Profit of US$ 4.2 million, a drop of 3.0% from Q4 2014, and 2.1% from Q1 2014. Revenue growth was strong, however, at 15.8% and 16.7% y-o-y and q-o-q, respectively, while Gross Profit Margin rose to 30%. I see Sprea as serving as a clear example of what management talent can accomplish in an industry that is subject to significantly lighter state regulation than our other business units. The Egyptian Hydrocarbons Corporation, meanwhile, is in the final stages of provisional commissioning at its greenfield mininggrade ammonium nitrate plant. Looking to our NatEnergy businesses, NatGas posted an almost 80% growth in EBT on both income growth and improved management of the treasury function (generating new interest income in the process), complemented by a decrease in SG&A costs. Meanwhile, Kahraba outperformed budget expectations reporting significant revenue and net profit growth, while plans to expand capacity are
EGYPT KUWAIT HOLDING COMPANY - EARNINGS RELEASE Q1 2015
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EGYPT KUWAIT HOLDING COMPANY EARNINGS RELEASE Q1 2015
on-track. In short, NatEnergy’s performance has been quite strong and given its solid fundamentals and long-term potential, we intend to increase our stake in this dynamic business. The Egyptian Tankers Company, meanwhile, witnessed a strong recovery in Q1 2015, driven by the positive correlation between low oil prices and escalating tanker rents. This stems from the global trading houses choosing to purchase oil at low prices and store it, in tankers, to sell when prices recover. Accordingly ETC realized US$ 2.7 million in Q1 2015, recording 232% growth compared to Q1 2014 Our diversified businesses likewise performed quite well, with BMIC turning in 60% growth in production year-on-year, and the segment overall contributing US$ 10.6 million to the Group’s consolidated financials. That said, the outsized impact on our operations of three exogenous forces beginning in fall 2014 sees me comparing our results this quarter not to the same three-month period of last year, but rather to Q4 2014. On a year-on-year basis, our results are, at best, mixed due to the impact of crippling natural gas shortages, low oil prices and a soft cement market. Quarter-on-quarter, however, our companies have proven they have management teams able to cope with and — where technically feasible, adapt to —changing market realities. Indeed, our ability to report positive returns for a period in which AlexFert, traditionally a core contributor to revenue, operated only 15 days of the 90 working days available (and in which our pricing strategies for more than one core company were impacted by market conditions out of our control) is, to my mind, a real testament to the strength of our diversification drive. Shortages at AlexFert come despite government assurances that we would receive 75% of natural gas needed, although I should add that we are cautiously optimistic that gas availability will improve given the import of LNG in May and the new cargo expected in August. Looking ahead, we will continue to manage for growth heading into the rest of the year while grappling with challenging macro conditions. These include a lack of clarity on the potential availability of gas (the supply of which has been limited in Q2 to-date), on the availability of hard currency, and on oil prices. Come what may, I have no doubt in our team’s ability to lead our companies through this period of economic recovery, positioning us to take advantage of any creativity in government policymaking — such as the green-light to private-to-private natural gas sales — and the expansion in the coming years of Egypt’s energy and natural gas supplies.
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EGYPT KUWAIT HOLDING COMPANY EARNINGS RELEASE Q1 2015
Fertilizers & Petrochemicals
48%
EKH has investments in two operational companies in the Fertilizers & Petrochemicals Segment: Alexandria Fertilizers Company (AlexFert) and Sprea Misr for Production of Chemicals & Plastics Company. A third investment, the Egyptian Hydrocarbon Corporation (EHC,) is a mining-grade ammonium nitrate manufacturing startup that began commissioning in early 2015. The company’s Fertilizers & Petrochemicals investments encompass products ranging from urea, ammonium nitrate and melamine to formaldehyde and liquid and powder glue. With more than 10 years of nitrogen fertilizer operational expertise, EKH has targeted investments with access to key export markets including the United States and Europe, diverse products across several industries, and strong cashflow generating businesses.
of Group Revenues in Q1 2015
Revenues (USD Millions) 78 53
44
Fertilizers & Petrochemicals in US$ ‘000 unless otherwise indicated Q1 2014Q4 2014
Q1 2015
Revenues
Q4 2014 52,434
Q1 2015 43,968 17%
Gross Profit Margin
44%
25%
EBITDA Margin
42%
-10%
23%
21,042
(8,435)
1,961
27%
-16%
4%
10,633
(485)
3,363
Net Profit Net Profit Margin
Total Fertilizer Sales
Q1 2014 77,839
Net Profit attributable to EKH
(Tons) 181,410 112,540 70,119
Q1 2014 Q4 2014
Q1 2015
Overall, the Fertilizers & Petrochemicals segment reported significant decreases in revenues both quarter-on-quarter (down 16.4%) and year-on-year (down 56.5%) as a strong performance at Sprea Misr was insufficient to offset challenges at AlexFert. Net income, although down 63.4% y-o-y was a significant improvement over the previous quarter. AlexFert reported Q1 2015 revenue of US$ 19.3 million and a gross loss of US$ 2.2 million, both a significant drop y-o-y, although gross loss—while down dramatically y-o-y—is a significant improvement over a Q4 2014 gross loss of US$ 12.8 million. Q1 2015 also marks only the second quarter in its history in which AlexFert has declared a loss, due entirely to a severe shortage of natural gas despite government assurances of 75% supply in the quarter. In total, the company was operative only 15 days in Q1, and even as production plummeted, the prices of urea on the domestic market are at their lowest levels in five years at US$ 280-290 per ton, influenced by both domestic price controls and sagging global urea prices. Looking ahead, management is hopeful that better allocations of natural gas may be available in the remainder of the year as imports begin, although there are no guarantees that the state will not maintain its current policy of cutting supply to industry to ensure power stations are stocked. Even if that policy changes on increased availability, management expects the third quarter — peak electricity consumption season — to see shortages. Accordingly, a real recovery of supply or even visibility on potential utilization rates are unlikely before the fourth quarter. Even as management copes with scarcity of supply, feedstock costs have risen, from US$ 4 per MMBTU in Q1 2014 to US$ 4.50 per MMBTU currently following the price hikes implemented with the July 2014 energy reforms. At the other end of the spectrum, Sprea Misr outperformed our expectations, reporting revenues of US$ 24.7 million in the quarter, a 17% y-o-y increase; notably in EGP terms, Sprea’s revenue posted a 24% y-o-y increase. Net profits inched up slightly as low methanol prices offset the impact of the expiration of its tax holiday in Q4 2014. Sprea’s Formica plant is doing very well, with a double digit margin, and management is optimistic that it will maintain and, potentially, improve margins going forward.
EGYPT KUWAIT HOLDING COMPANY - EARNINGS RELEASE Q1 2015
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EGYPT KUWAIT HOLDING COMPANY EARNINGS RELEASE Q1 2015
The success of the Formica plant is largely driven by its ability to secure raw materials and its placement in the market as an import-substitution play. The shortage of US dollars in the market allows Sprea to exercise a very beneficial pricing strategy and pursue market share simultaneously. Building on the success of this plant, Sprea has expanded into the wood sheets business, manufactured with Formica sheets and imported wood. This final product is higher up the value chain and will command strong margins. Sprea will continue to explore organic growth options for this business. Among those is the coming launch of sulfonated naphthalene formaldehyde production, on-track to begin in 1Q16. Sulfonated naphthalene formaldehyde is a key additive for ready-mix cement. This additive, which allows ready-mix to dry faster and smoother, is currently not produced in Egypt, and given the relatively low CAPEX required to start operations, Sprea will be positioned as a costeffective local supplier ready to capitalize on growth of the cement and real estate industries.
Energy & Energy-Related
39% of Group Revenues in Q1 2015
Revenues (USD Millions) 56
30
Q1 2014 Q4 2014
Egypt Kuwait Holding has investments in three companies in the Energy and Energy-Related Segment: NatEnergy, Tri-Ocean Energy (TOE) and the Egyptian Tanker Company (ETC). EKH builds and operates gas distribution networks in Egypt through its 100%-owned subsidiary NatEnergy, which covers a wide spectrum of activities, including the transportation of natural gas to power stations and the independent production of power. The company’s energy investments also cover oil and gas exploration and production through TOE — which enjoys access to a significant reserve potential spread across Egypt and South Sudan — and local and global marine transport of crude oil and petroleum products through ETC. Tri-Ocean recently finalized an acquisition that sees it enter into the upstream gas sector as a developer and operator for the first time.
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Energy & Energy-Related in US$ ‘000 unless otherwise indicated Revenues Q1 2015
Q1 2014 55,845
Q4 2014 30,015
Q1 2015 35,636
Gross Profit Margin
38%
-16%
34%
EBITDA Margin
42%
-18%
34%
5,564
9,830
1,565
Net Profit % Margin Net Profit attributable to EKH
10%
33%
4%
5,676
7,087
1,099
Crude Production
Q1 2014 Q4 2014
403,931
258,931
332,042
(BOE)
In the first quarter of 2015, the Energy & Energy-Related segment reported a 19% increase in revenues over Q4 2014, but a 36% decrease over the same period of last year. Net Profit reported significant declines both q-o-q and y-o-y, largely driven by difficulties at Tri-Ocean. Specifically, oil prices in the US$ 40-range in the quarter saw Tri-Ocean report a 42% drop in revenues year-on-year. Indeed, the oil and gas environment in Egypt in general has been sufficiently challenging to prompt Beach Energy is exiting Egypt altogether. Further to the south, our South Sudanese oil operations are running smoothly and management is keeping a watchful eye on political developments in the region.
Q1 2015
While its oil production activities are lagging, the outlook for Tri-Ocean’s gas concession (Offshore North Sinai) is considerably brighter. Average daily production dropped to c. 22 mm cubic feet per day as the company drills new wells. Production at ONS is on-track to ramp up gradually, rising close to four-fold through the course of the year to approximately 80 mmcf/d. Looking ahead, the company is augmenting Tri-Ocean’s management team with international talent, in preparation for the ultimate liberalization of the Energy industry and the opportunities inherent in such a development.
EGYPT KUWAIT HOLDING COMPANY - EARNINGS RELEASE Q1 2015
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EGYPT KUWAIT HOLDING COMPANY EARNINGS RELEASE Q1 2015
Meanwhile, NatGas is performing very efficiently and returning strong results, with an 18% y-o-y increase in Net Profits and a 19% Net Profit Margin. Key drivers of this improvement are strong improvements to income from customer service on state-regulated contracts as well as a strong uptick in revenues from contracts with the private sector. The company has also made strides in its management of the treasury function (generating new interest income in the process), complemented by a decrease in SG&A costs. Kahraba, despite being very tightly regulated by the state, has succeeded in turning a 61% improvement to Revenues and 18-fold growth of Net Profit. The division’s Net Profit Margin stands at 16%. Plans to triple capacity at this plant are on-track, with management having secured the necessary approvals, land, and gas supply contracts. Looking ahead, management is very optimistic about the electricity business in Egypt, which is the only sector in the country with a clear five-year pricing plan. Kahraba is very open to expansion opportunities higher up the generation chain, particularly if opportunities to lock-in gas supplies directly from the private sector were to present themselves.
Diversified
14% of Group Revenues in Q1 2015
Net Income (USD Millions) Q1 2014
Q4 2014
Q1 2015 10.6
6.6
-4.2
Egypt Kuwait Holding’s Diversified segment includes a wide array of strategic investments, from cement production, telecommunications and infrastructure to cooling systems and insurance. In line with the company’s strategy to invest in local businesses with large and defensible market positions, EKH owns c.30% of the Building Materials Industries Company (BMIC) in Egypt, a country home to the largest cement market in Africa with total consumption of c. 50 mtpa. Other group assets in the sector include Delta Insurance, Al-Shorouk for Melamine and Resins, Globe Telecommunications, Gas Chill and Bawabet al Kuwait Holding Company. In 1Q15, the Diversified segment reported a net profit of US$ 10.6 million providing a much-needed boost to the Group’s bottom line. The improvement in the contribution of the Diversified companies to Net Profit underscores the soundness of both our team’s investment picks and of our underlying investment strategy. For our cement company, BMIC, the top-line dropped a slight 5%, in line with a country-wide decrease in cement prices. Meanwhile, COGS increased year-on-year as the price of mazot rose with energy prices in July 2014; management attributes the company’s use of mazot as key to BMIC’s good utilization rates compared with industry averages. BMIC continued to benefit from a good geographical distribution mix, as pricing varies not by product, but by location of sales. To lock in its energy supply going forward, BMIC is on track to complete its conversion to coal-fired generation by Q2 2016. As do other participants in the market, BMIC views coal-fired power as likely to be more reliable in the medium-term.
Recent Corporate Developments Final Stages of Provisional Commissioning at Egyptian Hydrocarbon Corporation The Egyptian Hydrocarbon Corporation (EHC)’s greenfield plant is in the final stages of provisional commissioning. EHC is a mining-grade ammonium nitrate (MGAN) manufacturing start-up located in the 9th Industrial Zone of the Ain Sokhna area south of the Suez Canal. Developing Leaders Program In a nod to the fundamental importance of people to our businesses, our Human Resources Department has put into place a Developing Leaders Program for EKH and our subsidiaries that will better allow management to identify top performers and help them grow their careers with the Group.
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EGYPT KUWAIT HOLDING COMPANY EARNINGS RELEASE Q1 2015
This program is a key step in our institutionalization drive, as we have simultaneously implemented a number of employee-relations initiatives and training programs.
Outlook For the remainder of 2015 and looking ahead to 2016, management is hopeful (but not necessarily optimistic) that the recent rebound in oil prices to c. US$ 60 will prove sustainable, and that the government will manage to make natural gas more available to the country’s fertilizers manufacturers. Management considers it unlikely that urea prices will rise in the near future; however, the outlook for this segment is reasonably secure — provided that gas becomes available—as the allowable price for sales on the domestic market, while low, are quite close to international prices. In the meantime, management is confident that as Egypt’s economy continues to grow, the company’s performance will continue to reflect the benefits of diversification.
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EGYPT KUWAIT HOLDING COMPANY EARNINGS RELEASE Q1 2015
About EK Holding Egypt Kuwait Holding Company (EKHO.CA on the Egyptian Exchange and EKHOLDING on the Kuwaiti Exchange) is one of the MENA region’s leading investment companies with a diversified portfolio of investments that spans the region in sectors that include fertilizers and petrochemicals, energy, cement production, insurance, information technology, transport and infrastructure. Established in 1997 by a consortium of prominent Kuwaiti and Egyptian businessmen including our former Chairman, the late Nasser Al-Kharafi, the company has flourished during the past decade as the countries of the Arab world began to liberalize their economies and open doors for private sector investments in strategic sectors that had once been off limits.
INVESTOR RELATIONS CONTACT For further information, please contact:
STOCK SYMBOL EKHO.CA
Haitham M. Abdel Moneim Egypt Kuwait Holding, Co. Senior Investor Relations Manager [email protected]
CAPITAL Issued and Paid-In Capital: USD 243.9 mn Number of Shares: 975.6 million shares Par Value: USD 0.25 per share
14 Hassan Mohamed El-Razzaz St. (Previously Nawal St.) Dokki, Giza Tel (Direct) : +20 2 333-633-00
Forward-Looking Statements Statements contained in this document that are not historical facts are based on current expectations, estimates, projections, opinions and beliefs of Egypt Kuwait Holding Company (EKH). Such statements involve known and unknown risks, uncertainties and other factors; 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 EKH may differ materially from those reflected or contemplated in such targets or forward-looking statements. The performance of EKH is subject to risks and uncertainties.
EGYPT KUWAIT HOLDING COMPANY - EARNINGS RELEASE Q1 2015
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EGYPT KUWAIT HOLDING COMPANY EARNINGS RELEASE Q1 2015
Summary Income Statement (in US $) Energy & Energy Related Revenues % Contribution COGS Gross Profit % Margin
Q1 2014
Q4 2014
Q1 2015
55 844 840 38% 34 630 267 21 214 573 38%
30 015 323 37% 34 832 604 (4 817 282) -16%
35 635 688 39% 23 425 710 12 209 978 34%
Fertilizers & Petrochemicals Revenues % Contribution COGS Gross Profit % Margin
77 839 065 53% 43 720 205 34 118 860 44%
52 818 609 65% 39 122 436 13 696 173 26%
43 968 386 48% 36 351 189 7 617 197 17%
Diversified Revenues % Contribution COGS Gross Profit % Margin
13 413 826 9% 2 216 637 11 197 189 83%
(1 594 560) -2% 7 986 012 (9 580 572) 601%
12 670 156 14% 2 988 134 9 682 022 76%
Total Revenues1 COGS Gross Profit % Margin
147 097 731 80 567 109 66 530 622 45%
81 239 372 81 941 052 ( 701 681) -1%
92 274 230 62 765 033 29 509 197 32%
Selling Expenses G&A Net Provisions Other Expenses
3 053 413 12 784 970 198 772 16 763
2 905 069 14 858 902 (27 010 292) 19 666 742
1 942 980 11 252 319 (4 139 452) 84 944
Operating Income % Margin
50 476 704 34%
(11 122 102) -14%
20 368 406 22%
Interest Net FX Gain / Loss Capital Gain Other Income
(5 779 351) 440 804 74 005 (53 845)
(2 476 059) (877 873) 2 255 303 2 080 986
(3 253 821) (1 323 654) 16 204 639 027
Net Income before Tax Income Tax Deferred Tax
45 158 317 8 089 443 (440 589)
(10 139 745) 1 744 918 823 850
16 446 162 3 414 678 (335 476)
Net Income from Continued Operations Gain (Loss) from Discontinued Operations Net Income Non-Controlling Interest Attributable Net Income
37 509 463 37 509 463 14 608 813 22 900 650
(12 708 512) (12 708 512) (15 095 597) 2 387 085
13 366 960 13 366 960 (1 666 179) 15 033 139
Total revenues reported here differ from those in the company’s Consolidated Financial Statements in that they specifically exclude the results of EKH’s low-margin oil-trading business, which artificially skew margins if included. 1
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EGYPT KUWAIT HOLDING COMPANY EARNINGS RELEASE Q1 2015
Summary Balance Sheet (in US$)
Q1 2015
FY 2014
Fixed Assets (Net) & Projects under Construction
291 384 410
299 332 036
E&P Assets
474 273 132
461 156 743
Investments in Associates
154 625 914
134 474 361
Investments Available for Sale
142 002 656
140 048 833
Other long-term Assets
122 333 477
129 035 543
1 184 619 589
1 164 047 516
Cash
305 861 512
372 675 357
Investments for Trading
241 461 616
204 722 147
Total Receivables & Other Debtors
193 324 746
187 130 178
80 610 656
81 133 078
Total Long-Term Assets
Inventory & Work in Progress Assets held for Sale
1 700 002
1 700 002
Due from EGPC
12 367 302
18 965 439
Investments in Treasury Bills
16 162 468
-
Total Current Assets Total Assets Bank Overdraft and STL
851 488 302
866 326 201
2 036 107 891
2 030 373 717
233 570 306
216 530 511
Due to Suppliers and Sub-Contractors
63 309 562
57 727 936
Due to EGPC
47 399 712
39 950 261
Provisions
11 557 248
16 324 698
Debtors and Other Credit Balances
236 457 128
186 760 891
Total Current Liabilities
592 293 956
517 294 297
Long-Term Loans
181 186 664
199 975 146
Other Long-Term Liabilities
1 021 611
1 008 832
Due to EGPC
5 969 044
8 813 029
Provisions
4 070 000
4 070 000
35 146 247
35 735 129
Total Long-Term Liabilities
227 393 566
249 602 136
Paid-in Capital
243 914 564
243 914 564
Reserves
188 292 291
188 292 291
(154 840 985)
(143 723 798)
Deferred Tax Liability
Fair Value Reserve Retained Earnings
567 672 690
590 484 370
Translation Adjustments
(49 168 689)
(43 719 971)
Treasury Stocks
(7 121 774)
(7 121 774)
Parent's Shareholders' Equity
788 748 097
828 125 682
Non-Controlling Interest
427 672 272
435 351 602
Total Shareholders' Equity
1 216 420 369
1 263 477 284
Total SHE + Total Liabilities
2 036 107 891
2 030 373 717
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EGYPT KUWAIT HOLDING COMPANY EARNINGS RELEASE Q1 2015
Summary Cash Flows (in US $)
Q1 2015
Q1 2014
16 446 162
45 158 316
Depreciation & amortization of property, plant and equipment and other non-tangible assets
7 446 706
7 241 283
Exploration & development assets depletion
5 136 753
6 403 017
(1 932 779)
(1 691 674)
Cash flows from operating activities Net profit for the year before income tax Adjustments for:
Company's share of profits of associates Unrealized gain on held for trading investments Financing expenses Interest income Gain on sale of fixed assets Provisions no longer required Provisions other than depreciation Impairment loss on debtors and other debit balances Operating profit before changes in assets & liabilities available from operating activities Change in held for trading investments
(573 118)
(180 721)
7 669 637 (4 415 816)
7 744 614 (1 965 263)
(16 204)
(74 005)
(4 153 766)
-
14 314
198 772
84 944 25 706 833
16 763 62 851 102
(36 166 351)
(23 531 159)
Change in trade & notes receivable Change in debtors & other debit balances
3 572 183 (9 206 054)
48 626 386 (15 981 713)
Change in inventories Change in work in progress
4 271 440 (3 749 018)
1 69 322 (5 241 586)
Change in suppliers & subcontractors Change in creditors & other credit balances
5 581 626 20 549 357
(36 835 807) 73 445 925
4 605 466 31
1 882 012 (33)
Change in Egyptian General Petroleum Corporation Change in blocked deposits Change in derivative financial instruments Provisions used Interest & financing expenses paid Net cash available from (used in) operating activities
-
(12 500)
(212 868)
(277 266)
(9 026 274)
(8 789 020)
5 926 371
97 826 663
4 337 734
2 020 029
Cash flows from investing activities Interest income received Payments for acquisition of fixed assets & projects under construction Payments for acquisition of exploration & development assets Proceeds from sale of fixed assets
(1 451 610)
(799 988)
(18 253 142)
(2 787 821)
124 033
80 128
Proceeds from Egyptian General Petroleum Corporation Payments for acquisition of available -for- sale investments
8 028 414 (14 354 197)
1 765 311 (8 223 112)
Payments for acquisition of investments in associates Payments for investments in Treasury bills more than three months Net cash used in investing activities
(18 379 135) (5 978 477) (45 926 677)
(7 945 453)
Repayment of long-term loans & bank facilities
(53 122 035)
(60 986 776)
Proceeds from long-term loans & bank facilities
38 697 960
36 767 425
Proceeds from short-term loans & bank facilities Repayment of short-term loans & bank facilities
5 455 580 (181 722)
(7 201 319)
Proceeds from bank overdraft Repayments for minority interests
7 142 691 (787 500)
55 154 994 -
(5 400 037) -
(28 146 152) (4 622 731)
Dividends paid to employees and board of directors Net cash used in financing activities
(10 568 815) (18 763 928)
(12 079 948) (21 114 507)
Foreign currency translation differences Net change in cash and cash equivalents during the year
1 875 523 (56 888 711)
4 487 611 73 254 314
Cash and cash equivalents at beginning of the year Cash and cash equivalents at end of the year
372 351 161 315 462 450
190 735 319 263 989 633
Cash flows from financing activities
Minority Interests Dividends paid
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