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.‎