Today’s Top News & Analysis
Egypt's balance of payments recorded a surplus of USD282mn in 9M 2022/23
Petroleum and natural gas exports decline in Q1 2023
More oil cuts announced
Trade exchange between Egypt and India increases
Egypt’s auto sales increase 43% m/m in May 2023
Sidpec discusses ETHYDCO’s acquisition
Qatari Baladna increased its stake in Juhayna
AIVC Q1 2023/24: Narrower net losses but lower revenues
MACRO
Egypt's balance of payments recorded a surplus of USD282mn in 9M 2022/23
The Central Bank of Egypt (CBE) published Egypt's balance of payments (BoP) for 9M FY23 ending 31 March 2023, registering an overall surplus of USD282mn compared to a deficit of USD7.3bn in 9M FY22. The current account deficit (CAD) improved by 61% y/y to USD5.3bn in 9M FY23 compared to USD13.6bn in 9M FY22, while the capital & financial account surplus fell 25% y/y to USD8.1bn compared to USD10.8bn in the comparable period. The net errors and omissions registered a negative USD2.5bn from a positive of USD4.5bn. (Al-Borsa)
Petroleum and natural gas exports decline in Q1 2023
Egypt’s petroleum and natural gas exports declined in Q1 2023, primarily attributed to the decrease in commodity prices. The values of the exports are as follows:
- USD417mn (-56% y/y) for crude oil.
- USD1.76bn (-38% y/y) for liquified natural gas.
- USD356mn (-24% y/y) for petroleum products. (Al-Borsa)
More oil cuts announced
Several countries announced more voluntary oil cuts to occur in August. Algeria will cut production by an additional 20,000 bpd, bringing its total to 68,000 bpd. Russia announced that it will reduce its exports by 500,000 bpd. Saudi Arabia will extend its voluntary production cut of 1mn bpd for another month, bringing its total to 1.5mn bpd. (CNBC: 1, 2, 3)
Trade exchange between Egypt and India increases
Trade flow between Egypt and India increased to USD6bn in 2022 compared to USD5.3bn the year before (+13.7% y/y). Egypt's exports to India registered USD1.9bn in 2022 compared to USD2bn the year before (-5% y/y), while imports registered USD4.1bn in 2022 compared to USD3.2bn the year before (+28% y/y). (Al-Borsa)
Egypt’s auto sales increase 43% m/m in May 2023
According to Automotive Marketing Information Council (AMIC), Egypt’s auto sales volumes grew 43% m/m to 5,100 vehicles in May 2023, however, it is still a decrease y/y by half. It came as:
- Passenger car sales fell to 5,700 unit (-52% y/y).
- Bus sales fell to 694 units (-61% y/y).
- Truck sales fell by 74% y/y. (Enterprise)
CORPORATE
Sidpec discusses ETHYDCO’s acquisition
Sidi Kerir Petrochemicals’ (Sidpec) [SKPC] BoD held a meeting on 26 June 2023 to discuss the acquisition of the Egyptian Ethylene Production Co. (ETHYDCO) and assess the independent financial advisor's (Baker Tilly) valuation of SKPC and ETHYDCO. (Company disclosure)
Qatari Baladna increased its stake in Juhayna
Baladna, a Qatar-based company announced acquiring 600,000 shares of Juhayna Food Industries [JUFO] worth EGP7.4mn, raising its stake to 15.03% from 10.13%. (Company disclosure)
AIVC Q1 2023/24: Narrower net losses but lower revenues
Al Arafa Investment & Consultancies [AIVC] reported Q1 2023/24 net losses of USD0.1mn vs. net losses of USD5.4mn last year. However, revenues decreased by 6.6% y/y to USD53.7m. (Company disclosure)
Markets Performance
Key Dates
4-Jul-23
ISPH: OGM / Approving financial statements ending 31 Dec. 2022 and the proposed dividends.
ISPH: EGM / Discussing capital reduction & amending Articles No. 6 & 7 of the company's bylaws.
5-Jul-23
Egypt PMI: June 2023 reading.
6-Jul-23
CCAP: OGM / Approving financial statements ending 31 Dec. 2022.
CCAP: EGM / Discussing the continuation of the company.
BTFH: Capital increase / Last day of trading the rights issue.
9-Jul-23
EGCH: EGM / Approving the final cost of the nitric acid and ammonium nitrate project.
ETRS: EGM / Approving increasing the issued capital & amending Articles No. 7, 8 & 47 of the company's bylaws.
MPRC: Cash dividend / Deadline for eligibility for a dividend of EGP0.50/Share.
10-Jul-23
MPRC: Cash dividend / Ex-dividend date for EGP0.50/Share.
MCRO: EGM / Amending Article No. 3 of the company's bylaws.
11-Jul-23
BTFH: Capital increase / Capital increase subscription closing date.
12-Jul-23
OCDI: OGM / Discussing netting contracts.
MPRC: Cash dividend / Payment date for a dividend of EGP0.50/Share.
13-Jul-23
EXPA: Right Issue / Last day of trading the rights issue.
18-Jul-23
RMDA: EGM / Approving increasing the issued capital & amending Articles No. 6 & 7 of the company's bylaws.
EFIC: Cash dividend / Payment date for a dividend of EGP1.5/share (2nd installment).
EXPA: Capital increase / Capital increase subscription closing date.
19-Jul-23
PACH: OGM / Board election.
29-Jul-23
SAUD: EGM / Amending some articles of the bank's bylaws.
31-Jul-23
TMGH: Cash dividend / Payment date for a dividend of EGP0.096/share (2nd installment).