*Key news articles for today*

The OECD sees that phasing out the country’s broad-based energy subsidies to, eventually, reflect global energy prices is a must, adding that fully phasing out subsidies both for electricity and natural gas would help address inefficiencies in electricity use in manufacturing, transport, and logistics, which account for nearly 40% of domestic power demand.

Sources at the Ministry of Electricity estimated the arrears of foreign companies operating in the sector at more than USD500 million at 2023-end.

Egypt is looking to be re-listed in the JPMorgan Emerging Markets Government Bond Index, following its recent economic reform steps, according to the Minister of Finance.

Minister of Trade and Industry, revealed that Egyptian merchandise exports recorded c.USD6.12 billion during the months of January and February 2024, compared to USD5.7 billion during the same period in 2023. On the other hand, trade deficit during December 2023 recorded USD3.03 billion, compared to USD2.57 billion during the same month of the previous year.

The volume of transactions in the USD interbank market between Egyptian banks amounted to USD2.569 billion during the first 3 days of the flotation decision.

The Holding Company for Construction intends to offer majority shares from Al-Nasr Housing and Development, Al-Maadi Development and Construction, and Misr Reinforced Cement Works companies within the framework of implementing the government offerings plan.

COMI has raised the monthly maximum cap on FX transactions abroad to the equivalent of EGP75k-200k depending on account type, up from EGP25k-175k. Egyptians abroad can now also withdraw the equivalent of EGP3.5k-10.5k from ATMs abroad every month, up from EGP2k-6.5k. COMI also increased the monthly ceiling on FX transactions at home to EGP50k for all account types, up from EGP3.5k-12.5k.

DOMT (FV: EGP13.42, EW) reported 4Q23 results:

•                  Attributable net profit for the quarter recorded EGP100 million (-2.7% YoY, -2% QoQ), which is the weakest throughout the whole of FY23. FY23 attributable net profit recorded EGP454 million (+71% YoY).

•                  DOMT BoD proposed cash dividends distribution of EGP0.50/share, implying a payout ratio of 31% and a dividends yield of 3%.

•                  DOMT is currently trading at a FY24 P/E of 7.5x.

Norwegian renewables developer Scatec’s planned solar plant to power EGAL's Nagaa Hammadi industrial complex will be set up with investments of USD1.1 billion. The solar plant will produce 2-GW worth of green power. The developer will finance the project, conduct the required studies, develop the plant, and install the needed equipment.

Chems

The Ministry of Petroleum targets injecting investments worth USD535 million in Zohr field during the coming fiscal year. Meanwhile, Petrobel targets investing USD614 million during FY24/25 to increase crude oil and gas production rates to 179k BOE per day.