Corporate news
Earning Commentary-Egypt Kuwait Holding[EKHOA]
Egypt Kuwait Holding delivered a strong and data-rich performance in 9M 2025, with group revenues increasing 32% y-o-y to USD 576mn and EBITDA rising 41% to USD 232mn, expanding margins to 40%, while net profit reached USD 137mn despite a swing from USD 55.9mn in FX gains last year to USD 5.6mn in FX losses this year; attributable net profit settled at USD 118mn, down only 5% y-o-y. In 3Q25, revenues grew to USD 179mn (+32%), EBITDA surged to USD 63.5mn (+63%), and net profit landed at USD 35.2mn, with last year’s base inflated by USD 7.7mn in impairment reversals and a USD 4.3mn contribution from Delta Insurance. Segment performance was broad-based: AlexFert reported USD 178mn in 9M25 revenues (+16%), supported by urea export prices averaging USD 414/ton in 9M25 and rising to USD 451/ton in 3Q25, lifting 9M25 EBITDA to USD 83.2mn and net profit to USD 60.1mn; Sprea recorded USD 128mn in revenues (+26%) but saw profitability contract as methanol cost spikes compressed its gross margin from 40.5% to 21.6%, pushing 9M25 net profit down to USD 26.3mn; NatEnergy generated USD 53.7mn in revenues (+21%) and USD 17.6mn in net profit, while reaching 2 million residential gas customers and booking 3Q25 provision reversals of USD 1.31mn; Kahraba delivered USD 45.3mn in revenues (+16%) and USD 5.18mn in net profit supported by a 40% increase in distribution volumes and tariff adjustments; and ONS achieved USD 45.9mn in revenues (+6%), USD 37.6mn in EBITDA, and USD 24.7mn in net profit (+11%), with margins boosted by one-off reservoir management gains and reinforced by a newly ratified 10-year concession extension plus a new onshore block located 1.7 km from existing facilities. The diversified segment delivered USD 125mn in revenues (+130%) driven by gains from the sale of Shield Gas (USD 2.68mn), sovereign debt instruments (USD 32.5mn), and the partial exit from AD Astra (USD 8mn), while Bedayti’s net profit grew 69% y-o-y to EGP 70.5mn and Mohandes Insurance earned EGP 55.7mn. A major milestone was the full divestment of EKH’s 63.39% stake in Delta Insurance for EGP 3.17bn (about USD 67mn), strengthening liquidity for redeployment into high-return, USD-generating ventures including the UK-based Endolys project. Strategically, EKH also advanced gas distribution operations in Saudi Arabia’s Dammam Industrial City 3 under a 35-year concession, and progressed toward its upcoming corporate transformation into Valmore Holding, reinforcing its long-term strategy of international expansion, portfolio optimisation, and sustainable value creation.
Mariam Rafiq –Equity Analyst
MHany@egy.primegroup.org