KUWAIT / EGYPT, May 18: Kuwait Holding Company (EKHO.CA and EKHOA.CA on the Egyptian Exchange and ‎EKHK.KW on Boursa Kuwait), one of the MENA region’s leading investment companies, reported today its ‎consolidated results for the quarter ended 31 March 2025.‎

EKH recorded revenues of USD 195million for 1Q 2025, marking a 1% y-o-yincrease and a solid 17% sequential ‎growth, driven by stronggrowth momentum across the portfolio, particularly in the fertilizer and ‎petrochemicalsectors, underpinned by operational efficiency and favourable market dynamics. The Group ‎maintained healthy profitability, with gross profit and EBITDA margins recording 39% and 38% respectively, ‎supportedby efficient cost management and sustained operational strength of core business segments. ‎Meanwhile, net profit recorded USD 39.5 million compared to USD 72.0 million in 1Q 2024, the latter of which was ‎boosted by FX gains amounting to USD 40.2 million. Excluding the impact of FX gains, net profit for the first ‎quarter of 2025grew by a normalised24% y-o-y. Net profit margin came in at 20% during 1Q 2025. Net profit ‎attributable to equity holders amounted to USD 34.1mn in 1Q25, compared to USD 62.6mn in 1Q24 which included ‎‎39.0mn in FX gains. Excluding 1Q24 FX gains, attributable net profit grew by a normalised 44% y-o-y in 1Q25.‎

Commenting on the Group’s performance and business outlook, EKH Chairman Loay Jassim Al-Kharafi:“I am ‎pleased to report that we started off 2025 with continuous momentum, delivering resilient performance amid a fluid ‎macroeconomic backdrop.‎

This quarter, we successfully advanced our transformation agenda while maintaining healthy contributions across ‎key sectors, including fertilizers, petrochemicals, and utilities. Our revenue base continues to benefit from ‎meaningful USD-linked income, providing natural resilience to currency risk. Diversifying and growing our FX ‎profile remains a core strategic priority, supported by our expanding international footprint and focus on export-‎oriented sectors.‎

Strategically, we have made notable progress. We are set to kickstart commercial operations in Saudi Arabia by ‎the end of 2Q25, this marks our first fully owned investment in the Kingdom as well as a key milestone in our ‎regional expansion plans. Our MDF project, Nilewood, is in the final commissioning phase and remains on track to ‎commence operations shortly. Meanwhile, we are nearing closure of our first investment in Northern Europe — a ‎greenfield project representing a strategic entry into a high-growth and hard currency-generating sector.‎

During the OGM in April, our shareholders approved the Board’s recommendation for the distribution of both cash ‎and stock dividends for FY24, in line with our commitment to delivering value while maintaining flexibility for ‎recycling capital.‎

As we continue to develop EKH into a more globally oriented investment platform, we remain focused on ‎disciplined execution, responsible investment, as well as sustainable growth and return generation”‎

Commenting on the Group’s 1Q2025 results, EKH CEO,Jon Rokk: “I am proud to share that EKH’s first quarter ‎results reflect disciplined execution and solid underlying growth throughout key businesses, supported by ‎operational resilience across our portfolio and continued progress on strategic priorities.‎

Revenue rose 1% y-o-y and 17% q-o-q, supported by strong operational performance. AlexFert delivered double-‎digit top-line growth across both comparable periods, driven by improved urea export pricing and a more stable ‎gas supply during the quarter. Sprea posted robust EGP-denominated revenue growth, supported by higher sales ‎volumes on the back of the company’s strategy to grow its market share. NatEnergy’s EGP-based revenue ‎recorded solid growth, driven by rising household connections and improved profitability. Kahraba, now reported ‎as a standalone business within our portfolio, continued to post strong growth in electricity distribution volumes. ‎At ONS, we witnessed a temporary reduction in output due to planned maintenance workthat was finalized in ‎February, with operations now reverting to normal run rates. ‎

The divestment of Shield Gas in the UAE marked another milestone in our portfolio optimisation strategy. ‎Meanwhile, the Delta Insurance sale process remains on track, with bidders currently in the due diligence phase.As ‎we continue to recycle capital with the aim of value creation, we remain focused on unlocking higher returns and ‎aligning our portfolio with our long-term strategic priorities.‎

Our upcoming corporate rebrand will go beyond a mere change in visual identity; rather, it will reflect our shift ‎towards a more agile, global investment company, better positioned to scale proven platforms across borders. ‎We continue to optimise our organisation to render it fit for purpose as well as invest in our people, equipping ‎them with the necessary tools and frameworks to consistently deliver exceptional results.‎

As we look ahead, we remain focused on executing with discipline, investing for growth, and accelerating our ‎transformation.”‎

Fertilizers | AlexFert‎

AlexFertbooked USD 67 million in revenues during 1Q 2025, reflecting asolid 10% y-o-y and 13% q-o-q increase. ‎Revenue growth was supported by upward trending urea export prices as well as higher total volumes brought on ‎by improved gas availability during the quarter. Both gross profit and EBITDA margins expanded by 4pp y-o-yin ‎‎1Q 2025, partially driven byfavourable FX translation effects on EGP-denominated costs.Net profit came in at ‎USD 24.6 million, translating into a 3pp y-o-y expansion in net profit margin to reach 37% in 1Q 2025. ‎

The outlook on AlexFert remains optimistic, supported by sustained recovery in urea exportprices, which ‎increased a total of 35% since 2Q 2024 to reach an average of USD410/ton in 1Q 2025.Additionally, local fertilizer ‎quotas are expected to be revised upward by the government, offering upside potential to local quota pricing.‎

Petrochemicals | Sprea Misr

Sprea Misr reported revenues of EGP2.42billion in 1Q 2025, marking robust increases of 42% y-o-y and 58% q-o-‎q, driven by higher sales volumes as a result of management’s strategy to grow market share. In USD terms, ‎revenues posted a modest 1% y-o-y growth,due to the impact of the 2024 EGP devaluation, and rose by a strong ‎‎55% q-o-q, reflecting sustained improvement in performance.Gross profit improved significantly on a sequential ‎basis, increasing by 16% q-o-q in EGP terms and 14%q-o-q in USD terms, supported by highersales volume. ‎Meanwhile, net profit totalled EGP 494 million in 1Q 2025, implying a net profit margin of20%.‎

Sprea remains on track to achieve its FY25 net profit guidance, supported by continued recovery in local pricing, ‎which is gradually adjusting in response to the EGP devaluation, rising demand for SNF driven by the resumption ‎of construction activity in Egypt, and further top-line growth from highersales of liquid glue anticipated with the ‎start of operations at Nilewood.‎

Utilities | NatEnergy

NatEnergy reported revenues of EGP 882million in 1Q 2025, marking a 40% y-o-y increase, primarily driven ‎byincreased connections to residentialcustomers. In USD terms, revenues stood at USD 17.5 million, reflecting the ‎impact of the EGP devaluation. On a sequential basis,gross profit and EBITDA margins expanded by 3pp q-o-q ‎and 2pp q-o-q, respectively, to land at 26% and 25%, respectively, reflecting improved profitability driven by a ‎more favourable revenue mix, as management continues to prioritise margin-accretive residential and ‎industrialcustomers. Net profit came in at EGP249million in 1Q 2025, compared to EGP 583million recorded in 1Q ‎‎2024, with a net profit margin of 28% for 1Q 2025. Excluding the impact of FX gains booked in 1Q 2024, earnings ‎would have grown by a normalised 18% y-o-y.‎

NatEnergy's outlook remains promising,supported by the anticipated adjustments of natural gas connection ‎prices, which will help ease current margin pressures.Management continues to optimise revenue mix by ‎expanding its customer base in high-potential residential areas, further enhancing blended margins as well as ‎overall profitability.‎

Utilities | Kahraba

Kahraba’srevenues rose 37% y-o-y to EGP 679 million, driven by continued growth ofits electricity distribution ‎business, withdistribution volumes surging 43% y-o-y, reflecting robust performance delivered by the 10th of ‎Ramadan concession zone. In USD terms, revenuesstood at USD 13.4 million due to the impact of the EGP ‎devaluation. Net profit recorded EGP 65.2 million in EGP terms and USD 1.29 million in USD terms, reflecting the ‎impact of higher inputcosts as well as one-off gains recorded in 1Q 2024.‎

Kahraba is currentlyinvesting in a second substation within its10th of Ramadan concession area to meet rising ‎demand, as industrial activity in the zonecontinues to accelerate. Additionally, the recent government decision to ‎unify natural gas tariffs for all electricity generators will enhance the competitiveness of Kahraba’s generation ‎business.‎

Oil and gas | ONS

ONS reported revenues of USD14million in 1Q 2025, impacted by the temporary planned shutdown for pipeline ‎repairs as well as the turbine exchange that was finalised during February 2025.Net profit amounted to ‎USD6.5million in 1Q2025, translating into a net profit margin of 45%, in line with the broader trend observed ‎across gross profitability and operating margins, which was a result of the temporary pause in production due to ‎planned maintenance works. ‎

ONS is set to deliver growth in 2025, supported by key operational milestones including thecommercial production ‎at its two newly drilled wells, KSE2 and Aton-1.These developments are expected to sustain gas ouput at a steady ‎rate of 55 MMSCFD through the end of 2026, translating into higher volume sales. ONS also continues to benefit ‎from the 10-year extension to its Concession Agreement, approved by the Egyptian General Petroleum ‎Corporation(EGPC) in Q3 2024, reinforcing operational continuity and long-term growth prospects.‎

NBFS& Diversified ‎

The Diversified segment delivered strong growth in EGP terms, with revenues increasing 30% y-o-y and 46% q-o-‎q. In USD terms,revenues posted significant improvement sequentially, rising 44% q-o-q. Gross profitability ‎improved notably, with gross profit margin expanding by 4 pp y-o-yto 57%, supported by the reassessment of ‎insured asset values and premiums along withstrong portfolio returns driven by the high-interest rate environment. ‎Delta Insurance reported an attributable net profit of EGP 105 million compared to EGP 121 million in 1Q 2024. ‎Excluding the impact of EGP ‎‏19.1‏‎ million booked in FX gains in 1Q 2024, earnings would have grown by a ‎normalised c3% y-o-y.Mohandes Insurance posted a 71% y-o-y increase in attributable net profit andBedayti ‎recorded a 5% y-o-y growth in attributable net profit, reaching EGP 15.7 million. ‎

Looking ahead, management remains confident in the insurance sector’s momentum, supported by consistent ‎premium growth and ongoing increases in the valuation of insured assets. Additionally, Nilewood remains on track ‎to begin commercial operations, with the plant currently in its final commissioning phase.‎