Cabinet announced yesterday a new gas pricing formula for cement and petchem producers, whereby:

Cement producers will pay USD12/mmbtu, which will impact only SVCE since it is the sole local producer that is still using gas. The rest use coal and petcoke mainly. It is notable that coal, at current prices, is equivalent to USD17/MMBtu in gas prices.

The formula for petchem producers for the production of ethane/propane mix will be: 20%*ICIS average monthly commodity price/50, with floor cost of USD4.50/mmbtu.

SKPC will bear the cost of gas as per the formula stated above in addition to a premium that will be announced by EGPC. This will yield a gas cost that is less than or equal to what the company currently bears (less than USD8/mmbtu).

SKPC valuation ranges from EGP10-14, depending on the final gas cost (USD6-7/MMBtu) . 

SKPC is looking into acquiring Ethydco fully (where it currently owns 20% only) through a share swap after the valuation of both entities.

This merger should be positive for SKPC provided Ethydco's valuation is fair and not pumped up beyond reasonable assumptions.

Annual urban inflation picked up in September to 15%, up from 14.6% in August, while monthly urban inflation recorded 1.6%, accelerating from 0.9% in August, due to increases in food items and weaker EGP.

The government is looking to launch a national tourism strategy in 1Q2023 to help the country attract 30 million tourists a year.

The President approved a KWD750,000 loan from Kuwait to fund the feasibility study of a planned railway linking Egypt with Sudan.

684 companies received EGP5.4 billion in the framework of the lump-sum payment initiative of export subsidy dues. The net subsidies reached EGP4.3 billion after deducting taxes and debts.

QNBA 3Q22 bottom line came in at EGP2,577 million (+1% q/q, +35% y/y), bringing 9M22 bottom line to EGP7,332 million (+22% y/y).

CICH’s asset management launched an equity fund tracking the EGX30 Capped index.

MNHD signed a contract with B.TECH whereby B.TECH will relocate its headquarters to Kinda in Taj City, with an area of 12k sqm scheduled to be delivered by the end of 2023.

According to a meeting between the Prime Minister and real estate developers, there is a dedicated session on the real estate sector at the economic conference on 23-25 October 2022, given interest in ways to boost the sector and in proposals to attract foreign and Egyptian expat property buyers. Developers at the meeting called for diversified financing options for potential property buyers and for permission to sell to foreign buyers in USD.