Table of Contents
Key Points:
- EKH led by Egyptian businessman Loay Jassim Al-Kharafi by posts $90-million net profit in H1 2024.
- The company recorded great performance in the energy and petrochemicals sectors.
- The company’s investments brings growth despite regional challenges.
Egypt Kuwait Holding Company (EKH), led by Egyptian businessman Loay Jassim Al-Kharafi, reported a net profit of $90 million for the first half of 2024.
Despite economic challenges in the region, the company showed firmness and continued to expand.
The conglomerate operates in multiple sectors, including fertilizers, petrochemicals, energy, and insurance. During this period, EKH earned $321 million in revenue, with a gross profit margin of 42 percent and a net profit margin of 31 percent.
Investments and diversification increases financial performance
Loay Jassim Al-Kharafi, EKH’s Chairman, praised the company’s progress. He noted the successful growth of North Sinai Petroleum Company, a key subsidiary that added to the group’s profits.
In June 2024, the company began production from its first exploratory well, KSE-2. A second well, Aton-1, is set to start in September 2024. These developments should boost EKH’s revenue in the next few quarters.
Al-Kharafi emphasized the company’s focus on expanding in regional markets and exploring new sectors to ensure growth. He credited EKH’s management team for overcoming challenges like currency devaluation and volatile markets, highlighting their efforts to maximize shareholder returns.
Jon Rokk, CEO of EKH, expressed satisfaction with the group’s performance despite economic difficulties like the devaluation of the Egyptian pound and changing urea prices. He attributed the company’s steady results to its diverse portfolio and commitment to operational excellence.
Expansion in energy and petrochemicals fuels growth
The fertilizers and petrochemicals sector performed well, generating $181 million in revenue with a 41-percent net profit margin. The Alexandria Fertilizers Company, a key subsidiary, earned a net profit of $26 million due to reforms and stable gas supplies.
The energy sector also delivered strong results, earning $83 million in revenue and $37 million in net profit. EKH’s NatEnergy subsidiary grew by expanding concession areas and increasing gas production.
With Al-Kharafi’s leadership, EKH continues to execute its plans. The company is well-positioned to seize future growth opportunities, further strengthening its role as a leading diversified conglomerate in the region.
