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Egypt Kuwait Holding achieves 44% year-on-year growth in normalised earnings for Q1 2025, while advancing strategic transformation and geographic expansion plans

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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.‎

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Essentials win, construction slides in H1 subsidy shuffle

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KUWAIT CITY, Aug 13: Subsidies for basic food supplies, milk and baby food, and construction materials increased by 0.9 percent during the first half of 2025, rising by KD 1.6 million compared to the subsidies for construction materials in the same period of 2024. The total value of subsidies reached KD 181.7 million, including KD 95.5 million for construction materials (52.4 percent), KD 77.5 million for basic materials (42.6 percent), and KD 8.8 million for milk and baby food (5 percent) of the total food subsidies during the first half of the year.

Official statistics from the Ministry of Commerce and Industry showed that approximately 2.3 million individuals benefited from cumulative subsidies by the end of June 2025, along with the registration of about 272,134 cumulative ration cards during the same period.

Detailed data show that subsidies for basic commodities disbursed through ration cards during the first half of the year increased by 14.3 percent, about KD 11.1 million, compared to KD 66.4 million in the same period last year. Subsidies for milk and baby food rose by 18 percent (KD 1.6 million) this year, up from KD 7.2 million in the first half of 2024. Meanwhile, subsidies for construction materials declined by 10.5 percent (KD 11.2 million) to KD 95.2 million, compared to KD 106.4 million in the first half of last year.

Statistics also recorded that the Ministry of Commerce and Industry supported food commodities in June with a total of KD 32 million, of which KD 17 million (55 percent) was allocated to basic commodities, which is a 26 percent increase compared to May. Milk and baby food subsidies totaled about KD 2 million, representing 7 percent of the total subsidies disbursed and marking an 84 percent increase compared to the previous month. Subsidies for construction materials amounted to approximately KD 12 million, accounting for 39 percent of the total disbursed and reflecting a 24 percent decrease compared to May.

Data from the Construction Supply Department for June 2025 showed that 333 new requests for subsidized construction materials were issued, which is a 46 percent decrease compared to the previous month. Renewals of subsidized construction material transactions numbered 26, down ten percent, while three requests for exchanging subsidized materials were submitted, a 67 percent decrease. Requests for certificates of receipt of materials totaled 26, a four percent increase, and requests for certificates of non-receipt of materials reached 72, a three percent increase.

By Marwa Al-Bahrawi
Al-Seyassah/Arab Times Staff

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Global Economy Shows Signs of Improvement in Q2 2025: AEO

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Global Economy Shows Signs of Improvement in Q2 2025: AEO

Jamal Al-Loughani, Secretary-General of the Arab Energy Organization (AEO), formerly known as OAPEC.

KUWAIT CITY, Aug 13: The global economy showed signs of relative improvement in the second quarter of 2025, driven primarily by accelerated spending on imports in anticipation of higher US tariffs, alongside a general improvement in global financial conditions. This was revealed by Jamal Al-Loughani, Secretary-General of the Arab Energy Organization (AEO), in a statement to Kuwait News Agency (KUNA) on Wednesday, following the release of the organization’s second quarterly report on the global oil market.

Al-Loughani noted that the global economic growth rate forecast for 2025 was revised upward to 3%, compared to the earlier forecast of 2.8%. He attributed this positive shift to factors such as improved financial conditions and preemptive import spending. However, he cautioned that the lack of comprehensive trade agreements continues to stir concerns about the long-term impact of ongoing global trade uncertainties.

Despite this uptick in global growth, Al-Loughani pointed to a concerning 12.1% decline in the average spot prices of the OPEC basket of crudes, which fell to USD 67.4 per barrel during the second quarter. The prices of crude oil futures also recorded quarterly losses, with Brent crude and US West Texas Intermediate (WTI) falling by 10.8%, reaching $66.8 and $63.7 per barrel, respectively.

The AEO Secretary-General attributed the drop in oil prices to several factors, including shifts in US trade policy, growing concerns about a potential slowdown in global economic growth, and weaker oil demand. Additionally, he mentioned that the downgrade of the US sovereign credit rating due to rising government debt and a slowdown in China’s industrial production and retail sales further dampened investor sentiment.

Global oil supplies showed a slight increase, rising by 0.4% compared to the previous quarter, reaching 104 million barrels per day. This uptick was largely due to increased output from OPEC+ nations and the United States. On the demand side, however, global oil consumption saw a modest decline of 0.03% quarter-on-quarter, influenced by weaker demand from China and other Asian countries.

OPEC member states experienced a 9.5% decrease in crude oil exports during the second quarter of 2025, dropping to approximately $100 billion. This drop in revenue was primarily attributed to falling oil prices. Al-Loughani noted that these developments had a direct impact on the economic performance of member states, with a decline in oil revenues negatively affecting public finances and external accounts.

Despite these challenges, he emphasized that OPEC member states continued to pursue economic reforms aimed at reducing inflation, stimulating investment, and boosting labor market growth. Furthermore, the non-oil sector provided some support to these economies, helping to mitigate the overall economic impact.

Looking ahead, Al-Loughani expressed optimism for the continued growth of the oil sector, particularly with the OPEC+ decision to implement additional voluntary cuts in April and November 2023. These cuts are set to gradually increase production, reaching 411,000 barrels per day in July, 548,000 barrels per day in August, and 457,000 barrels per day in September. This increase in oil production is expected to positively affect oil revenues, which remain a crucial source of national income for member states.

Despite these positive steps, Al-Loughani warned that the global oil market remains surrounded by uncertainty. While OPEC forecasts indicate a decline in oil supplies from non-OPEC+ countries in the third quarter of 2025, global oil demand is expected to rise to approximately 105.5 million barrels per day. These projections, however, remain speculative due to several ongoing uncertainties, including escalating global trade tensions, geopolitical risks in the Middle East and Eastern Europe, and concerns over global economic growth.

Al-Loughani praised the continued efforts by OPEC+ countries, including six members of the Arab Energy Organization, to maintain balance and stability in the global oil market. These ongoing precautionary measures are aimed at ensuring the oil market remains resilient amid global economic and geopolitical challenges.

While the global economy has shown signs of recovery in the second quarter of 2025, the outlook for the oil market remains volatile, with both supply and demand factors contributing to continued uncertainty.

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Gulf Bank Concludes Successful Participation in University Admission Fairs at ‎Kuwait University and Abdullah Al-Salem University

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KUWAIT CITY, Aug 12: As part of its ongoing commitment to supporting education and empowering Kuwaiti ‎youth, Gulf Bank has successfully concluded its distinguished participation in the ‎university admission fairs at Kuwait University and Abdullah Al-Salem University. The ‎Bank actively engaged with new students, introducing them to its tailored banking ‎solutions designed specifically for young people.‎

Gulf Bank took part in the interactive admission fair held at Kuwait University’s Sabah ‎Al-Salem University City in Al-Shadadiya from 19 to 29 July 2025. The Bank’s booth ‎attracted a high turnout from students and parents, who showed great interest in the ‎banking services designed for university students.‎

Similarly, the Bank participated in the admission fair hosted by Abdullah Al-Salem ‎University at its Khaldiya campus from 6 to 17 July 2025. Gulf Bank’s presence ‎featured direct interaction with visitors, providing comprehensive information on ‎student accounts and other tailored services.‎

These participations are part of Gulf Bank’s continuous efforts to strengthen ‎engagement with youth and support them in the early stages of their academic journey. ‎Alongside sharing information on academic majors and admission processes, the ‎Bank also offered financial tips to help students manage their resources effectively ‎from the start of their university life.‎

At both events, Gulf Bank showcased its red account, one of its leading banking ‎solutions designed for customers aged 15 to 25. The account offers a wide range of ‎benefits, including prepaid cards, exclusive discounts, rewards on purchases, and ‎access to unique events and experiences that enrich both personal and professional ‎growth. ‎

Beyond its features, the red account serves as a platform to promote financial literacy ‎among youth, equipping them with the knowledge and skills to make informed ‎financial decisions early in life – positively shaping their future and fostering a ‎generation that is financially aware and capable of managing resources effectively.‎

Gulf Bank’s team expressed pride in supporting students throughout their high school ‎and university years, offering innovative banking services designed to keep pace with ‎their fast-paced lifestyles.‎

Gulf Bank concluded its participation by thanking the administrations of both ‎universities for organizing the fairs, which serve as valuable platforms to connect with ‎youth. The Bank reaffirmed its commitment to continuing its support for educational ‎and youth initiatives that contribute to Kuwait’s development and enhance the quality ‎of life for its students and community.‎

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