Egypt will double the oil storage capacity at the port of Al-Hamra within 3 years

Newsletter

07 Aug 2022

Egypt will double the oil storage capacity at the port of Al-Hamra within 3 years. The expansions come as part of Cairo’s efforts to transform into a regional center for energy storage, trading and trading. Al-Hamra Port, operated by the Egyptian Western Desert Petroleum Company, has 6 storage tanks and one buoy mooring facility for loading and unloading. The plant was built to handle ore that is produced in Egypt’s Western Desert. Expansion plans have been in place for several years and today we laid the foundation stone for them. The aim of the expansions is to develop the new Alamein area and provide energy for the factories that will be established there. (Bloomberg Asharq)

Egypt will expand the port by adding 4 storage depots with a capacity of 630 thousand barrels of crude oil each, to facilitate the movement of trading and receiving crude oil at the port of Al-Hamra.
In addition to expanding a plot of land next to the port to be an area for trading petroleum products and a shipping station to serve the expansions of the El Alamein area and contribute to the development of the new urban community And the Industrial and Agricultural Dahir in El Alamein. Oil prices rose last Thursday, after falling to their lowest level in nearly 6 months, after the market balanced between tight supplies and demand concerns, and by 0925 GMT, Brent crude futures rose 36 cents, or 0.37%, to 97.14 USD a barrel. (Bloomberg Asharq)
Russia finds a new outlet for the oil market through a small Egyptian port. Delivering a shipment of about 700,000 barrels of Russian oil to the Al-Hamra oil port in Egypt.
Russia found a new way to market its oil with the approach of Western sanctions on Moscow. A shipment of about 700,000 barrels of Russian oil was delivered to the Al-Hamra oil port in Egypt. Al-Hamra port, operated by the Egyptian Western Desert Petroleum, has six storage tanks, capable of holding 1.5 million barrels of crude oil, and one buoy mooring facility for loading and unloading. The terminal is built to handle crude produced in Egypt's Western Desert, opening the door to the possibility of mixing Russian barrels with local production. It is worthy to mention that Russia already depends on Egypt as a fuel oil transit station. (Bloomberg Asharq)
The transfer of oil from one tanker to another also appears to have taken place off Johor, near Singapore, in June. The area has already become a site for Iranian crude shipments destined for China.
An EU ban on oil shipments from Moscow and on the provision of insurance and other shipping services is set to take effect at the end of this year, increasing pressure on Russia to identify and test different ways to get its shipments to buyers. (Zilla Capital)
Moving to our green economy talks, the Ministry of State for Military Production and the Ministry of Local Development signed an agreement with Alexandria Passenger Transportation Authority to buy 40 locally-manufactured electric busses of high international quality.
The Minister of State for Military Production Mohamed Ahmed Morsi stated that his ministry is cooperating with Manufacturing Commercial Vehicles (MCV) company to produce the first electric bus to be fully manufactured in Egypt. The Egyptian government is taking major steps for transformation toward a green economy ahead of the 2022 United Nations Climate Change Conference (COP27) which will be held in Sharm El-Sheikh between 6 and 18 November 2022. (Arab Finance)
The submittal for bids on the management and operation of the Electric Vehicle Charging Stations Company was extended to August 31st.
The new company aims to build and operate 3,000 dual charging units in the first phase over 18 months, covering all highways and governorates of Cairo and Giza. The winner of the tender will appoint a consulting firm to select the locations of the stations from a preliminary list of over 2,000 sites. It is worth noting that the Sovereign Fund of Egypt and Misr Insurance Holding contribute 30% each to the Electric Vehicle Charging Stations Company, while Hassan Allam Group accounts for 20%. The company’s capital amounts to 120 million EGP and will be increased to 150 million EGP after the selection of the technical partner. (Arab Finance)
And for our EGX and companies talks, the Suez Canal Authority (SCA) is considering listing three companies on the Egyptian Exchange (EGX) by the end of the year.
Stakes ranging between 10% and 15% will be offered. The Suez Canal Authority Fund is expected to attract 100 billion EGP in funding to finance a portion of the investment in major national projects affiliated with the SCA, while another part of the funding will be invested in the EGX. On another note, the Suez Canal will not apply additional transit fees, adding that the applied increase is appropriate. (Hapi Journal)
Chimera Investments has acquired a 56% stake or 259.21 million shares in Beltone Financial Holding (BTFH) for around 385 million EGP, equivalent to 1.485 EGP per share.
The takeover has been carried out through Chimera’s mandatory tender offer (MTO) for up to 90% of Beltone, which expired on August 3rd. On June 13, Orascom Financial Holding (OFH) announced that Beltone had received a mandatory purchase offer from the Abu Dhabi-based private investment firm Chimera Investments for a stake between 51% and 90% at a price of 1.485 EGP per share. (Bloomberg Asharq)
Sidi Kerir Petrochemicals Company (Sidpec) (SKPC) recorded a net profit after tax of 468 million EGP in the first half (H1) of 2022, surging by 65.37% year-on-year (YoY) from 283 million EGP.
Meanwhile, the company’s revenues grew by 45.38% to 3.879 billion EGP in the six-month period ended June 30th from 2.67 billion EGP in H1 2021. (Mubasher)
On the other hand, Nasr Company for Civil Works (NCCW) incurred a net loss after tax of 11.073 million EGP in the first half (H1) of 2022, up by 16.39% from a loss of 9.514 million EGP in the year-ago period.
The company’s revenues fell to 53.478 million EGP in the January-June period of 2022 from 66.812 million EGP in the same period last year. In the first quarter (Q1) of 2022, the company achieved profits of 147,770 EGP, versus losses of 2.54 million EGP in Q1 2021. (Mubasher)