Egypt’s Alexandria Mineral Oils FY19 net profits fall 69.7%

Egyptian Alexandria Mineral Oils Co.’s (AMOC) net profits fell 69.7 percent to 750.021 million Egyptian pounds ($45.2 million) at the end of financial year 2018/2019 from 2.106 billion pounds last financial year.

According to its EGX disclosure, this significant drop is due to the increasing sales costs, which recorded 13.969 billion pounds during the financial year 2018/2019 against 12.030 billion in during the financial year 2017/2018.

Meanwhile, the company’s revenues increased by 4.5 percent as it registered 14.664 billion pounds.

AMOC was one of the companies that Egypt’s government had listed to be offered in the EGX according to the initial public offering programme (IPO).

However, the government announced earlier this year that it delayed its IPO after the company posted lower than expected profits, which fell 37.13 percent during the first quarter of financial year 2018/2019 to reach 253.09 million pounds versus 402.6 million pounds during the same period in financial year 2017/2018.

The company’s shareholders had requested that the company postpone the offering over fears that the profit drawback would hurt its share price.

Source: Ahram Online