Today’s Top News & Analysis
Another consecutive improvement in NFAs in December 2022
EBRD provides a USD175.5mn loan to Egyptian financial institutions
EGAL posts preliminary H1 2022/23 results
Sidpec reports 2022 preliminary results
ETEL obtains a new frequency
QIA acquisition of Vodafone Egypt to be determined upon exchange rates
IDHC will no longer acquire a stake in IDC
Delta Insurance approves to increase authorized and paid-in capital
MACRO
Another consecutive improvement in NFAs in December 2022
Net Foreign Assets (NFAs) for the Egyptian banking system improved for the second consecutive month in December 2022 by EGP47.2bn to reach negative EGP494.3bn against negative EGP541.5bn in November. (CBE)
EBRD provides a USD175.5mn loan to Egyptian financial institutions
The European Bank for Reconstruction and Development (EBRD), the European Union (EU) and the Green Climate Fund (GCF) are providing local private sector financial institutions and SMEs in Egypt with a USD175.5mn loan under the Green Economy Financing Facility program (GEFF) to support green investments. (EBRD)
CORPORATE
EGAL posts preliminary H1 2022/23 results
Egypt Aluminum [EGAL] announced its preliminary results for H1 2022/23, showing a 110% higher net earnings of EGP1.7bn against EGP814mn last year. This increase was partially on the back of a 25% increase in EGAL’s top line to EGP8.4bn. Gross profit margin also saw a significant increase to 26% against 19% last year. As for Q2, the EGAL managed to increase its net earnings q/q by 66% to EGP1.1bn on a 46% q/q increase in revenues to EGP4.9bn. (Company disclosure)
Sidpec reports 2022 preliminary results
Sidi Kerir Petrochemicals Co. (Sidpec) [SKPC] reported its preliminary 2022 results, recording net profits of EGP1.2bn (+131% y/y) on higher revenues of EGP8.6bn (+69% y/y). Also, gross profit margin increased to 24% from 21% the year before. Furthermore, Sidpec achieved substantial Q4 results, recording net profits of EGP493mn (+78% q/q) on higher revenues of 2.8bn (+49% q/q). SKPC’s Q4 net profits represented 40% of 2022 net profits. (Company disclosure)
ETEL obtains a new frequency
The National Telecom Regulatory Authority granted Telecom Egypt [ETEL] an additional 5MHz spectrum in the 1800MHz band using FDD technology. The spectrum is allocated for 10 years, priced at a competitive price of USD125mn. ETEL reported that obtaining this frequency is considered a strategic move that supports the growing customer base. (Company disclosure)
QIA acquisition of Vodafone Egypt to be determined upon exchange rates
Reportedly, due to the recent changes in EGP value, Qatar Investment Authority (QIA) will revalue the acquisition of Vodafone Egypt [VODE] 25% stake upon the exchange rates. Initially the acquisition price was set to be between USD1 - 1.25bn. On a side note, Telecom Egypt [ETEL] has a 45% stake in VODE. (Al-Mal)
IDHC will no longer acquire a stake in IDC
Integrated Diagnostic Holding Co [IDHC] will no longer negotiate to acquire a 50% stake in Islamabad Diagnostic Center (IDC) from Evercare IGA Holdings Limited. This is due to three main reasons:
(1) Extensive delays in the regulatory review process
(2) Unfavorable global economic conditions
(3) The condition precedent related to repatriating funds. (Company disclosure)
Delta Insurance approves to increase authorized and paid-in capital
Delta Insurance Co. [DEIN] EGM approved the BoD request to increase both the company’s authorized capital from EGP500mn to EGP800mn and the paid-in capital by EGP50mn to reach EGP400mn. This paid-in capital increase will be through the issuance of 12.5mn stock dividends at a par value of EGP4/share financed from retained earnings, bringing the total outstanding shares to 100mn. (Company disclosure)
Commercial International Bank to finance Etisalat Misr
Commercial International Bank [COMI] singed a financing agreement with Etisalat Misr worth EGP4.0bn. The agreement is to support Etisalat Misr expansion plans. (Hapi)
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