Ahmed Heikal, chairman and founder of Citadel Capital (Photo: Reuters)
Egypt's giant Citadel Capital Holding expects profitability by 2016 as the company initiates new projects and signs new investment deals, said CEO Ahmed Heikal in an interview with Reuters.
However, Heikal did not disclose the nature of the investments.
Since 2010, Citadel Capital has suffered losses amounting to $180 million (LE1.26 billion).
Over the last two years, the company's losses have diminished to a record $101.97 million (LE702.4 million). Earlier this month, they announced that consolidated losses for the second quarter in 2013 were $6.87 million (LE47.3 million).
Citadel Capital's losses originate from exchange rate fluctuations and depreciation of some of the firm's assets, according to Heikal.
The company is currently implementing projects in oil refining in Egypt worth $2.4 billion (LE16.53), as well as a cement factory in Algeria producing 3.5 million tons annually.
It is also partnering with Egypt-based Mashreq Petroleum Company on several projects.
The value of Citadel Capital investments is $9.5 billion, with eight operational core platforms and three non-core pre-operational greenfields.
In a company statement in 2012, Heikal said that Citadel is prepared to divest their non-core platforms in order to reduce operational risks.
However, these platforms will not be sold as a result of turmoil in Egypt, Heikal told Reuters.
"We could sell one, two or three assets if we decide up on it, but that is the wrong way to do business. We must build value, which takes time, and we must resist the temptation to sell at inadequate prices," Heikal told Reuters.
The Investment company strategically transformed their business model in 2012 to focus on acquiring companies in five core industries: Energy, Transportation, Agri-food, Mining and Cement – and holding them for longer periods to improve their performance before selling them, according to Citadel Capital's website.
Last week, the company's shareholders approved a $528 million (LE3.64 billion) capital hike as part of a plan to transform it into an investment holding company.
Heikal expects to increase capital hikes to $1.16 billion (LE8 billion) by the end of January 2014, in one of the biggest shareholding issues in Egypt since the 2011 revolution.
Correction: Ahram Online removed an outdated article on Citadel Capital consolidation that was mistakenly published.