Egypt Kuwait Holding revenues surge 32% during H1 2025 to $397 million

18/08/2025 05:52 AST

Egypt Kuwait Holding Company (EKH), one of the MENA region's leading investment companies, on Sunday announced its consolidated financial results for the period ended June 30, 2025. EKH reported consolidated revenues of $397 million in H1 2025, up 32 percent y-o-y, supported by broad-based growth across its portfolio, reflecting strong operational momentum. Profitability remained solid, with gross profit and EBITDA margins of 43 percent and 42 percent, respectively, underpinned by robust performance across core segments.

Net profit increased 1 percent y-o-y to $101 million, with a net profit margin of 26 percent. The y-o-y comparison is impacted by a one-off FX gain of $49 million recorded in H1 2024. Excluding this, net profit would have more than doubled y-o-y. Net profit attributable to equity holders of the parent stabilized at $90 million.

On a quarterly basis, revenues rose 75 percent y-o-y and 18 percent q-o-q to $215 million in Q2 2025, translating into net profit more than doubling y-o-y and rising 57 percent q-o-q to $62 million, supported by solid operational performance and portfolio optimization efforts.

Commenting on the Group's Performance, Loay Jassim Al-Kharafi, Chairman of Egypt Kuwait Holding (EKH), expressed his satisfaction with the progress achieved in executing the Group's strategy, which focuses on diversifying its portfolio across sectors and geographies, while rebalancing its asset base to simplify the balance sheet, unlock value, and ensure resilience and sustainable growth.

He highlighted that the Group launched commercial operations in the Kingdom of Saudi Arabia, supplying natural gas to industrial clients in Dammam Industrial City 3, a rapidly developing hub. This achievement represents a milestone in the Group's journey, positioning EKH as a contributor to the Kingdom's Vision 2030 industrial development agenda. Al-Kharafi further noted that the Group continues to advance its new clean energy project in the United Kingdom, which represents a compelling investment opportunity that will generate foreign currency revenues while enhancing the Group's ability to scale its investment activities into new global markets over the long term.

He also emphasized the significant progress made in implementing the Group's exit strategy from Delta Insurance, where the process is progressing as planned and is expected to close in 2H25, pending the necessary regulatory approvals. Al-Kharafi also noted that the Group continues to advance its corporate identity transformation, with the Board having resolved to call for a General Assembly to vote on changing the company's name to "Valmore Holding". This new identity builds on EKH's legacy of success while aligning the Group's positioning with its future growth strategy and international expansion plans, reflecting its ambition to transform into a global investment company.

He concluded by affirming that EKH will continue to strengthen its portfolio, ensure sustainable value creation, maximize shareholder returns, and unlock long-term growth opportunities across its platform

Commenting on the Group's Performance, Jon Rokk, CEO of Egypt Kuwait Holding (EKH), expressed his pride in the strong results achieved by the Group in the first half of 2025, supported by exceptional operational performance, notable growth across key subsidiaries, and tangible progress in implementing strategic objectives. Rokk confirmed that despite the operational challenges faced by AlexFert, which included a temporary suspension of feedstock supplies during Q2 and its impact on utilization rates, the company succeeded in growing both revenues and net profit to surpass last year's levels. Sprea Misr also delivered a notable performance, with revenues increasing 21 percent in USD terms during y-o-y H1 2025, in line with management's strategy to expand market share. At the same time, Nilewood produced its first MDF board in June, with final commissioning works nearing completion in preparation for the full commercial launch in 4Q25.

He added that NatEnergy continued to expand gas connection services within its concession areas, achieving sustained growth and underscoring management's focus on margin-accretive activities. Meanwhile, ONS recorded revenue growth of 9 percent y-o-y in 1H25, supported by higher production from the two newly commissioned wells. Rokk highlighted the clear progress made in portfolio optimization plans. The signing of the agreement to manage the divestment of Delta Insurance, followed by the subsequent offer submitted by Wafa Assurance, represented important milestones in the program. In addition, the Group successfully divested Shield Gas in the UAE during Q1 2025, along with other investment exits in Q2 2025, generating proceeds of $35 million during H1 2025. He reaffirmed the Group's continued commitment to executing its strategy, strengthening its investment portfolio and balance sheet, and creating sustainable value:

Fertilizers - AlexFert
AlexFert recorded revenues of $118 million in H1 2025, up 11 percent y-o-y, driven by the increase in global urea prices, which averaged $396/ton vs $333/ton in H1 2024, reflecting a 19 percent y-o-y increase. Gross profit and EBITDA margins expanded by 2pp y-o-y in H1 2025 to 40 percent and 47 percent, respectively. Net profit came in at $40 million, with net profit margin expanding by 2pp y-o-y to reach 34 percent in H1 2025.

AlexFert is expected to deliver a solid operational trajectory, with management demonstrating agility in addressing feedstock supply challenges. The financial outlook remains positive, supported by a favorable pricing environment, with export urea prices surpassing $400/ton in June and further rising to $476/ton in July.

Petrochemicals - Sprea Misr
Sprea Misr reported revenues of $90 million in H1 2025, up 21 percent y-o-y, driven by higher sales volumes in line with management's strategy to grow market share. Gross profit margin landed at 21 percent. While EBITDA margins stood at 20 percent. Net profit came in at $18 million, with a net profit margin of 20 percent. Sprea's medium-term outlook remains favorable, supported by stable local prices at current levels, as well as increasing demand from the recovery in construction activity. In addition, management continues to expand the company's footprint in both local and international markets, with export sales rising to 21 percent of total sales in Q2 2025, compared to 17 percent in Q1 2025.

Utilities & related activities - NatEnergy
NatEnergy revenues rose 15 percent y-o-y in USD terms and 43 percent y-o-y in EGP terms in H1 2025, reaching $34 million, driven by strong growth in natural gas connections. The company maintained healthy profitability, with gross profit and EBITDA margins rising to 30 percent and 29 percent, respectively. Net profit came in at $11 million in 1H25, with a net profit margin of 32 percent.

NatEnergy's outlook remains positive, supported by expectations of potential increases in connection prices, revisions to government-set commission fees, and continued expansion of its household customer base in high-potential areas. This is further complemented by management's ongoing execution of a revenue diversification strategy and continued cost optimization initiatives.

Utilities & related activities - Kahraba
Kahraba's revenues recorded notable growth in H1 2025, supported by strong momentum in its electricity distribution business, with distribution volumes rising 40 percent y-o-y. Gross profit and EBITDA margins came in at 17 percent and 19 percent, respectively. Net profit reached $3 million in H1 2025, reflecting a net profit margin of 11 percent.

Kahraba is moving forward with its expansion plans, including investment in a second substation within its 10th of Ramadan concession area to meet rising electricity demand driven by accelerating industrial activity. In addition, management continues to explore potential strategic concession acquisitions in 10th of Ramadan and other high-potential areas.

Oil & gas - ONS
The North Sinai Offshore Concession recorded revenues of $31 million in H1 2025, up 9 percent y-o-y, while maintaining strong profitability with gross profit and EBITDA margins of 54 percent and 82 percent, respectively. Net profit came in at $15 million in 1H25, reflecting a healthy net profit margin of 49 percent. The outlook for ONS remains positive in 2025, supported by stable production volumes from recently commissioned wells and ongoing efforts to enhance operational efficiency. In addition, the company will continue to benefit from the 10-year extension of its Concession Agreement, as well as the awarding of the strategically located Fayrouz Onshore Concession, which offers low tie-in costs, rapid monetization potential, and supports long-term operational sustainability and profitability.

Non-banking financial services & other diversified sectors
The diversified segment reported revenues of $97 million in H1 2025, supported by a number of factors, including the divestment of Shield Gas and other investment exits as part of management's ongoing portfolio optimization efforts aimed at simplifying the balance sheet. Mohandes Insurance delivered net profit growth of 21 percent y-o-y, reflecting the promising fundamentals of Egypt's insurance sector. Meanwhile, Bedayti posted net profit attributable to equity holders of EGP 42 million in H1 2025, up 42 percent y-o-y, demonstrating sustained growth within this fast-expanding sector despite elevated interest rates.

Egypt Kuwait Holding (EKH), established in 1997 with an issued and paid-in capital of $296 million, is dual-listed on both Boursa Kuwait and the Egyptian Exchange. The company is one of the Middle East's leading and fastest-growing investment entities, with a diversified investment portfolio spanning five key sectors: fertilizers and petrochemicals, gas distribution, power generation and distribution, insurance, and non-banking financial services.

Kuwait Times