Last Update 12:13
Tuesday, 12 November 2019

Shares in Egypt's Qalaa Holdings slide on diluted refinery stake

Reuters , Thursday 1 Aug 2019
Share/Bookmark
Views: 1830
Share/Bookmark
Views: 1830

Shares in Egypt’s Qalaa Holdings, one of the country’s largest investment companies, fell by nearly 10% on Wednesday after it said that its stake in a new refining company had been reduced.

Qalaa said on Wednesday that it now owns 13.14% of the Egyptian Refining Company (ERC), a $4.1 billion project it co-owns with Qatar Petroleum, state-run Egyptian General Petroleum Corp (EGPC) and other partners. Qalaa previously held a 19% stake.

The company’s shares closed at 3 Egyptian pounds, down 9.9% from Tuesday’s close.

In a statement to the Egyptian stock exchange, Qalaa said its holding had been diluted over time partly because Qatar Petroleum and EGPC have underwritten additional equity for the project.

Radwa El-Swaify, head of research at Pharos Securities Brokerage, said the share price fall was attributable to Qalaa’s reduced stake in ERC combined with the effect of low oil prices on the refinery’s financial outlook.

Qalaa’s shares have suffered steep losses in recent years, sinking as low as 0.66 Egyptian pounds in October 2016.

“The stock’s recent performance has been negative, reaching the level of 3 Egyptian pounds today, which may open the door to a further decline to technical support levels at 2.7-2.75 Egyptian pounds,” said Ibrahim El Nemr, analyst at Naeem Brokerage.

Qalaa Chairman Ahmed Heikal told Reuters in May that he expects revenue to exceed 90 billion Egyptian pounds ($5.45 billion) in 2020 after the refinery comes online in the third quarter of 2019. Between 50 billion and 55 billion Egyptian pounds would come from ERC, he said. 

Short link:

 

Email
 
Name
 
Comment's
Title
 
Comment
Ahram Online welcomes readers' comments on all issues covered by the site, along with any criticisms and/or corrections. Readers are asked to limit their feedback to a maximum of 1000 characters (roughly 200 words). All comments/criticisms will, however, be subject to the following code
  • We will not publish comments which contain rude or abusive language, libelous statements, slander and personal attacks against any person/s.
  • We will not publish comments which contain racist remarks or any kind of racial or religious incitement against any group of people, in Egypt or outside it.
  • We welcome criticism of our reports and articles but we will not publish personal attacks, slander or fabrications directed against our reporters and contributing writers.
  • We reserve the right to correct, when at all possible, obvious errors in spelling and grammar. However, due to time and staffing constraints such corrections will not be made across the board or on a regular basis.
Latest

© 2010 Ahram Online.