The total revenues of Egypt’s Qalaa Holdings, an African leader in energy and infrastructure, witnessed an increase during the second quarter of 2016.
In a statement, the company said that its revenues jumped by 11 percent to 1.8 billion Egyptian pounds (US$202.7 million).
This increase was a result for company’s strong participations and investments in energy sector that represented 41 percent of the total revenues.
The statement showed that Qalaa incurred net losses of 287.1 million during the second quarter, with non-cash expenses related to the restructuring process.
The increase in revenues reflects a growth of Taqa Arabia’s revenues with an annual rate of 18% during the second quarter of 2016, as well as an increase in the revenues of ASEC Holding by 13% during the same period.
During the first six months of 2016, Qalaa’s revenues reached EGP 3.5bn, whereas net losses reached EGP 529.8m.
Qalaa also recorded non-cash expenses worth EGP 315.1m during the second quarter of 2016. This is an eight-fold increase of revenues worth EGP 40.5m in the second quarter of 2015.
These non-cash expenses include erosion expenses worth EGP 255.4m, in addition to a difference of exchange rates valued at EGP 39.1m.
For his part, Qalaa Holdings co-founder and managing director Hisham El-Khazindar, said that the company’s management is looking to enhance the company’s financial position through a restructuring process and the reduction of non-cash expenses by the end of next year.
El-Khazindar added that the company will continue to allocate the currently available cash flows for the reduction of debts and minimising operating risks in subsidiaries. The outcome of the revenues from the future exiting process will also be used in reducing Qalaa Holding’s debts.
Source: Daily News Egypt