Al Ahly Pharos

*Key news articles for today* 

The government is expected to raise fuel prices in April as it works to phase out fuel subsidies. The anticipated move is part of the government’s plan to have energy prices reach cost recovery levels by the end of the year. The committee is expected to raise prices by EGP1-1.25 to narrow the gap between selling prices and production costs, the source said. Diesel is set to continue to be sold at a subsidized price, while butane gas cylinders will also continue to receive a significant subsidy, Prime Minister said in last week’s presser. 

The state recorded a primary surplus of EGP330 bn in the eight months between July 2024 and February 2025, Finance Minister said. Meanwhile, tax revenues rose 38.4% y-o-y during the eight months, marking its highest growth rate in years. 

Indian energy transmission and cable manufacturing company Sterlite Power is mulling a USD5-6 bn electricity grid specifically for green hydrogen projects.

China’s Xinyi Glass is looking to set up a USD700 mn solar panel glass manufacturing facility in the Suez Canal Economic Zone. The plant, which will be built over two phases, is expected to produce 1.5 mn tons of solar panel glass and 1.1 mn tons of high-purity silica sand annually. The majority of output will be exported.

Arceus, a joint venture between BP and ADNOC subsidiary XRG, is in advanced negotiations to buy Shell's 50% stake in the Harmattan gas field in the Mediterranean, with BP holding the remaining stake.

Banque Misr and the National Bank of Egypt reduced interest rates on their high-interest USD certificates of deposit by 0.5 percentage points yesterday, USD certificates now offer annual returns of 7.5% and 5.5%.

The FRA gives access to 5 non-banking financial institutions, including HRHO subsidiary - ValU, to provide their services through Fintech platforms after contracting with Vlens Co.

HRHO is proposing to distribute a portion of FY24 profits to its shareholders, in the form of shares of U Consumer Finance Company (ValU) at par value, rather than cash dividends. This will occur after the completion of the ownership restructuring procedures for U Consumer Finance Company and the approval from the OGM. 

- Market Overview 

- TMGH

- MASR

- HELI

- PHDC

- AMER

- Prepared by: Mayada Amin- CETA, CFTe

Indian chemicals producer TCI Sanmar has plans to invest an additional USD300 million into its Egypt operations.

Feedgas deliveries to the Damietta and Idku liquefaction plants have been recently increasing, with unnamed sources telling Bloomberg that Egypt could export its first LNG shipment from Idku within a year.

A delegation from the Investment Ministry will meet with EU representatives to discuss the EU's recently announced temporary 15.6% dumping duties on Egyptian steel exports.

The Ministry of Finance has completed preparations for a amendments of the Value Added Tax Law, in preparation for submission to the Cabinet. 

Egypt has contracted with BP to import two shipments of liquefied natural gas during current March.

Supermarket giant Lulu Group International is looking to expand in Egypt. 

The Ministry of Investment and Foreign Trade has approved import shipments by some car dealers, after a three-year hiatus. 

Local renewables player IRSC signed a 30-year Power Purchase Agreement with ARCC to supply it with clean, reliable electricity generated from renewable sources. 

SWDY increased its stake in subsidiaries Pyramids for Industrial Development (PID) and Pyramids Zona Franca (PZF) with total value of EGP1.15 billion.

CANA AGM approved the distribution of 0.54:1 bonus shares.

ATLC received FRA approval to increase the company’s paid-in capital by EGP441.3 million through rights issue.

GBCO’s venture capital arm, GB Ventures, plans to invest up to USD1 million in three to five startups this year as part of its expansion plan across the Middle East and Africa. 

- Market Overview 

- COMI

- EFIH

- ORAS

- CLHO 

- LCSW

- prepared by: Mayada Amin- CETA, CFTe

Egypt is expected to receive four LNG shipments by April, as the country looks to build up a strategic gas reserve.

The Sovereign Fund of Egypt is conducting a comprehensive review of the privatization program that could see it expand the program to 40-60 state-run companies.

Chinese textile manufacturer Jiangsu Guotai signed an agreement to set up a USD10 million readymade garment factory in the Qantara West Industrial Zone.

The Tourism Support Fund approved extending the Aviation Incentive Program, which expires next April, to the summer season from May to October 2025. 

The CBE's net foreign assets rose to c. USD12.12 billion by the end of February, compared to c. USD12.02 billion the previous month, an increase of around USD99 million.

SKPC Board of Directors proposed a cash dividend distribution of EGP0.75/share for FY24, implying a payout ratio of 26.8% and a dividend yield of 3.3%.

ALCN (FV: EGP32.50, OW) issued neutral 2Q24/25 preliminary results. Bottom line amounted to EGP1.5 billion in 2Q24/25, down 21% QoQ but up 24.3% YoY. 1H24/25 bottom line came in at EGP3.4 billion (+55.9% YoY). ALCN is currently trading at FY24/25f P/E of 9.2x and EV/EBITDA of 8.1x.

The Finance Ministry is expected to kick off the first phase of its planned desalination plants tenders, involving four plants with a combined capacity of 3 million cubic meters per day, in 2Q25. 

SCEM recorded strong FY24 results. Attributable net Income came in at EGP3,077.5 million in FY24, compared to a net loss of EGP121.4 million in FY23, noting that EGP1,517.4 million was attributed to the sale of an investment.

Weekly Commodities Update

- Market Overview 

- HELI 

- EFIH 

- AMOC

- ADIB

- MTIE 

Prepared by: Mayada Amin- CETA, CFTe

Oil Minister Karim Badawi met with CEO of US-based LNG solutions company Excelerate Energy Steven Kobos where they discussed leasing floating storage and regasification units to Egypt, sharing technical expertise, and LNG trade cooperation, according to a Ministry statement.

A high-level investment delegation has received preliminary approval to visit Iraq, unnamed sources said. 

The Holding Company for Food Industries intends to list a number of its subsidiaries on the EGX in the coming period.

Oil producer Capricorn Energy said it has reached a preliminary agreement with the EGPC to improve gas pricing to increase production, under terms aimed at boosting investment and production, along with updated commercial terms.

British company BP seeks to increase gas production in Egypt by approximately 160 million cubic feet per day, from two wells in the King Mariout and Fayoum concession areas in the deep waters of the Mediterranean Sea, in 2H25.

A government official said that the Ministry of Petroleum expects to receive four shipments of imported LNG during April. 

President Abdel Fattah El-Sisi approved a USD131 million loan agreement from the African Development Bank to help finance the first phase of the Private Sector Development and Economic Diversification Support Program, as part of the state budget support, according to a report published in the Official Gazette.

SWDY reported steady 4Q24 results with attributable earnings coming in at EGP4.2 billion (+106% YoY, -13% QoQ). FY24 attributable earnings surged to EGP17.5 billion (+73% YoY). SWDY board of directors proposed a cash dividend distribution of EGP1.00/share, implying a payout ratio of 12.3% and a dividend yield of 1.2%. SWDY is trading at FY25e P/E of 9.7x and EV/EBITDA of 5.5x.

EGAL signed a 25-year USD-denominated corporate Power Purchase Agreement with Scatec for a 1.1 GW solar plant and 200MWh battery energy storage system in Naga Hammadi backed by a sovereign guarantee. Scatec targets to reach financial close and start construction within the next 12 months. We expect the new plant to save around 10-15% of the company’s electricity cost which could contribute to increasing our FV by EGP20.00/share to EGP175.00/share. We remind you that electricity represents more than 40% of production costs and EGAL’s gross margin shrinks by 2-3% for every EGP0.25/kWh increase in electricity tariff, according to our calculations.

CIEB lowered its proposed 2024 dividend payout to EGP3.20/share, representing 50.2% of distributable profits, down from a previously planned EGP3.82/share, or 60% of distributable profits, according to a Board decision. The payout remains subject to the general assembly’s approval.

OLFI is to distribute cash dividends of EGP2.00/share for FY24 on 27 March 2025, for shareholders on record on 24 March 2025, implying a DY of 10.4%.

EFID’s BoD is considering the approval of doubling the company’s capital to EGP280 million. The proposed capital increase of EGP140 million will be distributed on 700 million shares and financed through the company’s retained earnings of FY23. 

- Market Overview 

- CIEB 

- TMGH

- FWRY 

- ISPH

- Prepared by: Mayada Amin- CETA, CFTe

In line with IMF directives, the government is committed to have energy prices reach cost recovery levels by the end of the year.

The Prime Minister said that the government set a target inflation rate at 10% by 2026.

The IMF's mission chief to Egypt, stated that the fifth review of Egypt's loan program will take place before the end of June, according to the current schedule for disbursing tranches.

After a sharp wave of outflows, foreign and Arab investors in the local debt market shifted to net buying for the second day in a row, following the IMF'S approval of the disbursement of Egypt's fourth tranche. 

The government is currently working on moving the Chill Out's company ownership from the National Service Projects Organization’s (NSPO) National Roads Company subsidiary to the Sovereign Fund of Egypt, once this step is completed the fund will start restructuring the fuel retailed ahead of its planned IPO, sources said. 

UK-based oil and gas giant Shell is investing some USD300 mn alongside Petronas in its ongoing drilling operations in the West Delta Deep Marine concession as part of its 11th phase, Shell Egypt VP and Country Chair said. 

Egypt has raised the purchase price of newly extracted natural gas from three concessions owned by the British company Cheiron Petroleum in the Western Desert by 61%, to USD4.25 per million British thermal units.

EFIC board of directors proposed a cash dividend distribution of EGP15.00/share for FY24, implying a payout ratio of 71% and a dividend yield of 10%.

CCAP plans to launch an initial public offering (IPO) of its subsidiary, National Printing, on the EGX by June. The offering allows the exit of an existing shareholder.

ESRS will move to the over-the-counter (OTC) market at the start of trading today after completing a share buyback from minority investors.

DSCW's BoD approved the purchase of a plot of land owned by the NBE and Banque Misr, valued at c. EGP167 million. 

DSCW's BoD canceled the planned purchase of Twin Top Real Estate Investment Company after failing to reach an agreement on the purchase price. 

The Social Housing and Mortgage Finance Fund signed a cooperation protocol with QNBE Egypt to provide EGP5 billion in mortgage loans to finance housing units on favorable terms and at subsidized interest rates, doubling the bank's allocations for this purpose to EGP10 billion. 

- Market Overview 

- FWRY 

- ISPH

- ACGC

- EGAL

- GBCO

- Prepared by: Mayada Amin- CETA, CFTe