The UAE's ADNOC owns half of Total's stations in Egypt for 203 million USD | Zilla Capital

Newsletter

31 Jul 2022

The UAE’s ADNOC owns half of Total’s stations in Egypt for 203 million USD

Starting our morning with the latest M&As and companies talks, the UAE’s ADNOC owns half of Total’s stations in Egypt for 203 million USD. ADNOC Distribution is the largest fuel distributor and retailer in the UAE, and is a subsidiary of the Abu Dhabi National Oil Company responsible for all oil and gas production in the emirate. The acquisition is expected to be completed in the first quarter of 2023 pending fulfillment of certain conditions, including customary regulatory approvals. According to the statement, the acquisition will include the renovation of several gas stations, to be compatible with the ADNOC brand, in addition to building new stations. (Bloomberg Business)

Arabian Food Industries Company (Domty) (DOMT) showcased five projects in the integrated industrial initiative between Egypt, the UAE, Jordan, and Bahrain.
The projects aim to localize food industries in these countries. The company allocated 120 million EGP for 2022 to invest in new production lines, adding that an investment plan was set for 2023. It is worth noting that Egypt hosted the higher committee meetings of the integrated industrial partnership from July 23rd to 25th. (Arab Finance)
Fawry for Banking Technology and Electronic Payment (FWRY) collaborated with Petroleum Trading Services (Petrotrade) to launch pre-paid charging service for gas utility cards issued by the company.
Fawry will also provide Petrotrade’s clients with collection services for due amounts to ease payment for citizens. The prepaid charging service will be available through Fawry’s different payment channels including thousands of point-of-sale (POS) machines spread across Egypt, in addition to, Fawry Plus branches. Moreover, Fawry also offers its services on its online portal which will enable residents of villages and rural districts to charge prepaid utility cards, instead of going to Petrotrade's main branches. (Arab Finance)
Wadi Kom Ombo for Land Reclamation Company sold lands in an auction in consideration of EGP 9.782 million EGP.
The sold land plots are located in Kom Ombo and West Delta. It is worth noting that the company achieved a net profit after tax of 13.26 million EGP in the first nine months of the fiscal year (FY) 2021/2022, compared to 18.55 million EGP in the same period in FY 2020/2021. Wadi Kom Ombo is an Egypt-based company that is engaged in the real estate development sector. (EGX)
Net profit after tax of Abu Qir Fertilizers hiked by 158% on an annual basis during fiscal year (FY) 2021/2022 ended on 30 June 2022 to reach 9.05 billion EGP, compared to 3.52 billion EGP a year earlier.
The increase in profits was driven by continuous operation of all plants at full capacity, improvement in the average prices of exports, free sale, and agricultural associations during FY21/22, in addition to higher investment income in invested companies. (Mubasher)
Moving to our economics and markets talks, Egypt has signed a memorandum of understanding (MoU) to begin the preliminary studies of the establishment of a new plant for green hydrogen production at the Suez Canal Economic Zone (SCZone) with around 8 billion USD in investment.
The MoU has been signed by a group of government entities, including the New and Renewable Energy Authority (NREA), the SCZone, the Egyptian Electricity Transmission Co. (EETC), and the sovereign fund of Egypt (TSFE), with India's largest renewable energy company ReNew Power. Under the agreement, the green hydrogen production plant will be built with an annual capacity of 20,000 tons, expandable to up to 220,000 tons per annum. The project is set to be executed in phases starting with a pilot phase for the generation of 20,000 tons of green hydrogen a year, while the second phase will witness an expansion in production to reach 200,000 tons. (Mubasher)
A group of state-owned hotels is being evaluated for an initial public offering (IPO) within four months.
The evaluation process of the new entity, under which the businesses of hotels are combined, is currently being conducted for the offering of 10% to 15% stake on the Egyptian Exchange (EGX), unless the sale would be for a strategic investor. According to data by the government, the hotels are Cairo Marriott Hotel, Cataract Aswan, Marriott Mena House, and Winter Palace, in addition to, Steigenberger Hotel in Cairo and Damietta. Through this move, Egypt seeks to encourage the private sector to accelerate the pace of economic growth in accordance with the state’s IPO program. (Bloomberg Business)
Moreover, the government announced the shareholding structure of the new electric vehicles (EV) charging company that is set to start implementing the charging stations in the fourth quarter (Q4) of 2022.
The shareholders in the EVs charging company are the Sovereign Fund of Egypt (TSFE) owning a 30% stake in the company, Misr Insurance with a 30% stake, and Hassan Allam Utilities with a 20% stake, while the remaining 20% stake will be offered for sale. (Bloomberg Business)
Egypt’s total foreign exchange receipts amounted to 126.7 billion USD in fiscal year (FY) 2020/2021, down by 1.7% from 128.9 billion USD in FY 2019/2020.
This decline was driven by the decrease in government receipts which reached 0.5 billion USD in FY 2020/2021. Foreign cash payments totaled 129.5 billion USD in FY 2020/2021, versus 143.2 billion USD in the preceding FY. Members of the Arab League led foreign exchange inflows by 42.4% of total receipts, with Saudi Arabia on top with 23.5 billion USD in proceeds. (Ahram Gate)
On the other hand, Europe represented 38.6% of total foreign exchange outflows at a value of around 50 billion USD, headed by the UK with payments worth 11.8 billion USD.
Meanwhile, the value of cash transactions, including receipts and payments, with members of the Common Market for Eastern and Southern Africa (COMESA) rose by 53%, recording 2.1 billion USD in FY 2020/2021, versus 4.1 billion USD in the prior year. However, the value of cash transactions with the European Union’s (EU) members dropped by 43.2% to 43 billion USD from 75.7 billion USD a year earlier. (Ahram Gate)