The 5th edition of the Egypt Petroleum Show (EGYPS) started today and will continue until February 16th

Newsletter

15 Feb 2022

For our top talks today, first, the 5th edition of the Egypt Petroleum Show (EGYPS) started today and will continue until February 16th, under the theme “North Africa and the Mediterranean: Delivering Energy Today”. The three-day event will be held under the patronage of President Abdel Fattah El-Sisi, supported by the Ministry of Petroleum and Ministerial Resources. The show will welcome 11 international energy ministers, 19 CEOs, and 8 secretary generals who will discuss long-term energy transition objectives related to regional energy markets’ goals of self-sufficiency and sustainability in the short-term. (Arab Finance)

Second, the petroleum sector aims to double the volume of its exports of natural gas and liquefied gas during the second half of the current fiscal year by more than 100%.
According to a report issued by the Natural Gas Holding Company, the total exports of natural and liquefied gas recorded 3.5 million tons during the first half of the current fiscal year. The sector plans to increase those exports to range between 7.4 - 7.5 million tons by the end of the current fiscal year. It is expected that Egypt's exports of natural and liquefied gas will witness a remarkable recovery during the current year, compared to the previous year. Noting that despite the challenges and difficulties imposed by the Corona pandemic, the volume of Egypt's exports of natural and liquefied gas witnessed a remarkable increase recently. (Arab Finance)
In addition, the fees for transporting natural gas to the national grid for 2022 have been set at 41.07 cents per million British thermal units.
Thus, the government, represented by the Gas Market Activities Regulatory Authority, approved an increase in fees for transporting natural gas through the use of the national network for natural gases, for the current year, by 6.4% compared to last year. Last February, Al Mal published the natural gas transit tariff in the National Natural Gas Network at 38.6 cents per million British thermal units. It is noteworthy that the Board of Directors of the Gas Market Regulatory Authority, headed by Eng. Tarek El Molla, Minister of Petroleum and Mineral Resources, approved the value of the tariff for the use of the transportation system (the national network for natural gases) for the year 2020 at 37.5 cents per million British thermal units, compared to 29 cents in 2019. (Al-Mal)
Moreover, Nahla Zaitoun, Senior Social Protection Specialist at the World Bank, revealed that 50 million USD has been allocated to the Forsa Program for Economic Empowerment out of the 500 million USD loan signed with the Egyptian government for the “Solidarity and Dignity” project.
Nahla Zaitoun explained, that it is expected to complete the injection of the total Takaful and Karama funds amounting to 500 million USD before the end of this year, or at the latest during 2023, due to the challenges of the Corona virus pandemic. She added that the World Bank's contributions have risen to 900 million USD since the start of the program, pointing out that this participation is not limited to solidarity and dignity only, but also includes pumping funds for projects affiliated with various ministries, including education, transport and health. (Al-Mal)
Egypt’s trade balance deficit dropped by 63.1% to 1.19 billion USD in November 2021, as compared to 3.22 billion USD in the same month of 2020.
The value of Egyptian exports surged by 80.6% year-on-year (YoY) to 4.48 billion USD in November 2021 from 2.48 billion USD. The agency attributed this surge to the increase in the value of some goods’ exports, including fertilizers, fresh fruits, and ready-made clothing by 83.3%, 50.2%, and 31.5%, respectively. On the other hand, the value of Egypt’s imports stood at 5.66 billion USD last November, slipping by 0.5% from 5.69 billion USD in the corresponding month of 2020. The decrease in imports value was driven by the decline in some imports’ value, including wheat, passenger cars, and meat which fell by 6.1%, 15.6%, and 21.4%. (the Central Agency for Public Mobilization and Statistics (CAPMAS)
And for our investments talks, El Shenawy Group has launched Finsquare project in the New Administrative Capital (NAC) with 500 million EGP in investments.
The project is located in the Financial District in NAC and situated on 6,000 square meters (sqm), with a built-up area (BUA) of up to 12,500 sqm, the Group’s Chairman, Farag El Shenawy, announced. El Shenawy noted that NAC is one of the fourth-generation (4G) cities and is the government’s focus of attention, adding that it has become a destination for many investors. With the beginning of the drilling works, the Group is planning to deliver the project in two and a half years. El Shenawy also revealed that units’ areas start from 45 sqm and the payment plans will be extended to six years. (Al Borsa Newspaper)
Telecom Egypt (ETEL) has signed a strategic memorandum of understanding (MoU) with Grid Telecom, a subsidiary of the Greek Independent Power Transmission Operator (IPTO).
The signed MoU aims at interlinking Egypt and Greece through the use of submarine cables systems. This will assist Egypt and Greece in exploring different joint connectivity options and opportunities for expansion to other destinations based on the infrastructure and international connectivity capabilities of both companies. This MoU will help to reinforce cooperation between the two countries in the information and communication technology sector by bolstering the Mediterranean data route between both countries, Minister of Communications and Information Technology Amr Talaat said.
Heliopolis Housing and Development (HHD) (HELI) is planning to engage in partnerships with other developers to buy more than 500 feddans in New Heliopolis in East Cairo over the next five years, according to the CEO of HHD Tamer Nasser.
Since mid-2020, the company has been fully utilizing its lands and assets, Nasser said, adding that the company owns around 4,700 feddan of undeveloped lands in New Heliopolis, located between Badr and El Shorouk cities. HDD is targeting a leap in its annual revenue, to reach a range between 4 billion EGP and 5 billion EGP by 2025, with real estate projects accounting for 40% of the targeted revenue. (AL-Mal)
Moving to our EGX and companies talks, Edita Food Industries (EFID) has launched its latest biscuit product Onrio Mini LAVA.
The new product is being sold under Edita’s Onrio brand at a price of 3 EGP per pack. The pack contains four sticks and is available in two flavors; vanilla and chocolate, and both biscuit flavors are filled with cocoa hazelnut cream. The launch of Onrio Mini LAVA contributes to reinforcing Edita’s position in the filled biscuits segment as Egypt’s second largest and second fastest growing. (EGX)
Quality Standards, a company specialized in geographic information systems, won the implementation of the electricity network project in Tanzania,
in cooperation with its Indian counterpart, "Techno Hendra", with a total investment of 40 million USD. Tamer Abdel Naim, CEO of Quality Standards, said that the company seized the project after strong competition with 6 global alliance. (Arab Finance))
Noqod Holding Company launched its first investment services in the local market represented by CashNow for payment and payroll systems,
which aims to provide its first services and products to companies, with a target portfolio value of approximately 500 million EGP this year. it is worth mentioning that 3 entrepreneurs, Abd al-Rahman Ali, Muhammad Abdullah and Ahmed Naguib, had established “Noqod” with the aim of investing in the field of non-banking financial services, in addition to financial technology solutions (Fintech). Abdul Rahman Ali said that it launched its first arm, “Cash Now” with a paid-in capital of 30 million pounds, which specializes in payment services provided to various companies operating in the local market, solving financial problems, and reducing pressure on the liquidity available to them. (Al-Mal)
Mostafa Khairat, CEO of BariQ Plastic Waste Recycling Company, a subsidiary of the Intro Holding Group, revealed that the company is negotiating with 5 local and foreign institutions to borrow about 280 million EGP,
representing 70% of the financing needed for its new expansions, whose investment cost is about 400 million EGP. Khairat added that BariQ plans to add two new production lines in its factory in the 6th of October city, pointing out that his company will manage the remaining 30% through its own resources, expecting the expansions to be completed before the COP27 climate conference that Egypt is hosting in next November. (Al-Mal)
Fawry for Banking Technology and Electronic Payment (FWRY) announced that the total value of loans disbursed by its subsidiary Fawry Microfinance since its incorporation exceeded 1 billion EGP.
Fawry Microfinance’s portfolio grew by 67% to reach 437 million EGP on December 31st 2021, compared to 265 million EGP in the same period year ago. The subsidiary of the EGX-listed company registered a collection rate of 98.5% at the end of 2021. (Shorouk News)
Egypt Gas (EGAS) posted a 73% year-on-year (YoY) surge in net profits after taxes during the year ended December 31st 2021.
The company’s net profits after taxes soared to 146.773 million EGP in the full year 2021, compared to 84.666 million EGP a year earlier. Revenue grew by 35% 5.405 billion EGP during the year ended December 31st 2021, as compared to 4.002 billion EGP in 2020. Moreover, the board of directors approved the cash dividend distribution proposal of 1.25 EGP per share for 2021, which is pending the approval of the ordinary general meeting (OGM). It is worth noting that Egypt Gas is an Egypt-based shareholding company engaged in the design, installation, operation, and maintenance of natural gas distribution networks and pressure reduction stations for domestics, commercial, and industrial applications. (EGX)
And finally, Arab Development and Real Estate Investment’s (ADRI) Board of Directors (BoD) has approved a proposal for a capital increase.
The proposal includes increasing the company’s issued and paid-up capital to 32.532 million EGP from 29.574 million EGP through the issuance of 5.914 million shares at a nominal value of 0.5 EGP per share. The capital increase will be funded by retained earnings as per financial statements of the period ended December 31st 2020. Moreover, the BoD also approved to retain the profits registered in the year ended December 31st 2021, which will be presented before the company’s ordinary general meeting (OGM). (EGX)