17/08/2025
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17/08/2025
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Loay Jassim Al-Kharafi, Chairman of Egypt Kuwait Holding
Jon Rokk, CEO of Egypt Kuwait Holding
KUWAIT CITY, Aug 17: Egypt Kuwait Holding Company (EKH) one of the MENA region’s leading investment companies, today announced its consolidated financial results for the period ended 30 June 2025. EKH reported consolidated revenues of USD 397 million in 1H25, up 32% 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% and 42%, respectively, underpinned by robust performance across core segments.
Net profit increased 1% y-o-y to USD 101 million, with a net profit margin of 26%. The y-o-y comparison is impacted by a one-off FX gain of USD 49 million recorded in 1H24. Excluding this, net profit would have more than doubled y-o-y. Net profit attributable to equity holders of the parent stabilized at USD 90 million.
On a quarterly basis, revenues rose 75% y-o-y and 18% q-o-q to USD 215 million in 2Q25, translating into net profit more than doubling y-o-y and rising 57% q-o-q to USD 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 planed 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 2Q 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% in USD terms during y-o-y 1H25, 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% 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 1Q25, along with other investment exits in 2Q25, generating proceeds of USD 35 million during 1H25.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 USD 118 million in 1H25, up 11% y-o-y, driven by the increase in global urea prices, which averaged USD 396/ton vs. USD 333/ton in 1H24, reflecting a 19% y-o-y increase. Gross profit and EBITDA margins expanded by 2pp y-o-y in 1H25 to 40% and 47%, respectively. Net profit came in at USD 40 million, with net profit margin expanding by 2pp y-o-y to reach 34% in 1H25.
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 USD 400/ton in June and further rising to USD 476/ton in July.
Petrochemicals | Sprea Misr
Sprea Misr reported revenues of USD 90 million in 1H25, up 21% y-o-y, driven by higher sales volumes in line with management’s strategy to grow market share. Gross profit margin landed at 21%. While EBITDA margins stood at 20%. Net profit came in at USD 18 million, with a net profit margin of 20%.
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% of total sales in 2Q25, compared to 17% in 1Q25.
Utilities & Related Activities | NatEnergy
NatEnergy revenues rose 15% y-o-y in USD terms and 43% y-o-y in EGP terms in 1H25, reaching USD 34 million, driven by strong growth in natural gas connections. The company maintained healthy profitability, with gross profit and EBITDA margins rising to 30% and 29%, respectively. Net profit came in at USD 11 million in 1H25, with a net profit margin of 32%.
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 1H25, supported by strong momentum in its electricity distribution business, with distribution volumes rising 40% y-o-y. Gross profit and EBITDA margins came in at 17% and 19%, respectively. Net profit reached USD 3 million in 1H25, reflecting a net profit margin of 11%.
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 USD 31 million in 1H25, up 9% y-o-y, while maintaining strong profitability with gross profit and EBITDA margins of 54% and 82%, respectively. Net profit came in at USD 15 million in 1H25, reflecting a healthy net profit margin of 49%.
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 USD 97 million in 1H25, 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% 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 1H25, up 42% 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 USD 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.
