Today’s Top News & Analysis
New oil discovery in Gulf of Suez
Unemployment rate declines to 7% in Q2 2023
TSFE to offer the Ministry of Finance's building to investors
Egypt's non-oil trade deficit decreased to USD7.5bn in Q2 2023
Egypt's food exports reach USD2.6bn in 7M 2023
Egypt intends to increase its imports of Israeli gas by 31% starting October
CICH Q2 2023: Higher financing expenses put a lid on bottom line growth
Several foreign investors are interested in a stake of EAST
Taaleem is granted the licenses for Badya University
Valu announces its strategic rebranding
MACRO
New oil discovery in Gulf of Suez
Cairo-based Cheiron found a new oil discovery in the Geisum and Tawila West concession in the Gulf of Suez. Total output from the field, located in North Geisum, is currently at c.23,000 bpd. (Reuters)
Unemployment rate declines to 7% in Q2 2023
The unemployment rate in Egypt declined by 10bps q/q to 7% in Q2 2023. The Egyptian labor force amounted to 30.9mn vs. 30.5mn the previous quarter. (CNBC Arabia)
TSFE to offer the Ministry of Finance's building to investors
The Sovereign Fund of Egypt (TSFE) reportedly intends to offer the Ministry of Finance's building in downtown Cairo to investors in September. The building will be offered as a usufruct right in exchange for a percentage of revenues with the aim of turning it into a mixed-use facility and a center for startups. (Asharq business)
Egypt's non-oil trade deficit decreased to USD7.5bn in Q2 2023
Egypt's non-oil trade deficit decreased to USD7.5bn (-10.7% y/y ) in Q2 2023 driven by a contraction in the value of non-oil imports to USD15.9bn (-9.7% y/y), which negated the 8.7% y/y decrease in non-oil exports to USD8.4bn. (Al-Borsa)
Egypt's food exports reach USD2.6bn in 7M 2023
Egyptian food industry exports increased 8% y/y to USD2.6bn in 7M 2023, a new high for food exports for the same period. Arab nations were the most important food trading partners, representing 53% of Egypt's total food exports with a value of USD1.36bn (+13% y/y). (Al-Borsa)
Egypt intends to increase its imports of Israeli gas by 31% starting October
Egypt reportedly plans to increase its imports of Israeli gas by 31% starting October, coinciding with a decrease in local demand in Israel and a rise in targeted production. This move could lead Egypt back into the European gas export market through its liquefication stations. Egypt is currently importing Israeli gas at a rate of 800mn cubic feet per day since last July, the plan is to elevate the intake to 1.05bn cubic feet per day starting October. (Asharq Business)
CORPORATE
CICH Q2 2023: Higher financing expenses put a lid on bottom line growth
· CI Capital Holding’s [CICH] Q2 2023 net income after minority grew by 5% y/y to EGP197mn. This comes despite a stronger increase of 90% y/y in top line to EGP1.5bn, driven by higher operating revenues across all segments. However, this increase did not filter through to the bottom line due to a 126% y/y increase in financing expenses to EGP848mn and a 56% y/y increase in administrative expenses to EGP299mn.
· On a sequential basis, Q2 2023 net income came in 38% q/q weaker on the back of a 6.6% q/q drop in top line and soaring financing expenses (+16% q/q).
· H1 2023 recorded a 52% y/y leap in net income to EGP517mn as revenues doubled to EGP3.1bn (+102% y/y). However, higher financing expenses (+144% y/y to EGP1.6bn) also put a lid on bottom line growth. (Company disclosure)
Several foreign investors are interested in a stake of EAST
Eastern Co. [EAST] said that there are several foreign investors interested in acquiring up to 15.3% of its shares but did not announce any names. We note that this makes a 30% of the government's 50.95% stake. On a separate note, sources added that among the interested investors comes Philip Morris and Japan Tobacco International (JTI). (Company disclosure, Economy Plus)
Taaleem is granted the licenses for Badya University
Taaleem Management Services [TALM] announced the conclusion of the licensing process for Badya University. Meanwhile, the university should have eight faculties offering a capacity of 12,500 students with its first phase expected to be operational in the academic year starting September 2024. Badya University is a venture between TALM (60%) and Palm Hills Developments [PHDC] (40%). (Company disclosure)
Valu announces its strategic rebranding
ValU, the consumer finance arm of EFG Holding [HRHO], announced a strategic rebranding from just a Buy-Now Pay-Later (BNPL) platform to a universal fintech powerhouse to reflect its comprehensive set of financial solutions. (Company disclosure)
Key Dates
23-Aug-23
BINV: Cash dividend / Payment date for a dividend of USD0.032/Share.
MTIE: Stock dividend / Last date for eligibility for a 0.25-for-1 stock dividend.
24-Aug-23
MTIE: Stock dividend / Date for distributing a 0.25 for-1 stock dividend.
26-Aug-23
MICH: BoD meeting / Follow up on production, sales and exports.
27-Aug-23
SPMD: OGM / Approving financial statements ending 31 Dec. 2022.
28-Aug-23
ZMID: Cash dividend / Deadline for eligibility for a dividend of EGP0.150/Share.
30-Aug-23
ORAS: Financial results Announcement / Q2 2023 financial results' announcement.
31-Aug-23
ZMID: Cash dividend / Payment date for a dividend of EGP0.05/share (1st installment).
PHAR: Cash dividend / Payment date for a dividend of EGP1.00/share (2nd installment).
1-Sep-23
MSCI / MSCI's August 2023 Quarterly Index Review Effective Date.
5-Sep-23
Egypt PMI / August 2023 reading.
6-Sep-23
ELSH: OGM / Approving the decisions of the company’s board of directors in its meeting held on 15/6/2023.
ELSH: EGM / Amending some articles of the Company's bylaws.