Egypt Kuwait Holding Company (EKH), listed on both the Egyptian Exchange (EKHO.CA and EKHOA.CA) and Boursa Kuwait (EKHK.KW), one of the most prominent investment entities in the MENA region, has announced its consolidated financial results for the fiscal year ending on 31 December 2024.
The company’s strong financial performance highlights its operational efficiency, robust portfolio diversification, and ability to navigate economic volatility and operational challenges effectively.
Robust Financial Performance Across FY 2024 and Q4 2024
In the fourth quarter of 2024, EKH recorded revenues of USD 167 million, marking a solid 9% growth compared to the previous quarter. This increase was driven by broad-based revenue growth across its diversified portfolio, reflecting sustained market recovery. Despite global macroeconomic headwinds, EKH successfully maintained strong profitability margins, with a gross profit margin of 41% and an EBITDA margin of 42%.
Net profit for the quarter reached USD 46 million, supported by improved revenue performance and bottom-line growth at AlexFert. The net profit margin expanded by 5 percentage points year-on-year (y-o-y), reaching 28%. Quarter-on-quarter (q-o-q), net profit grew by 20%, while net income attributable to shareholders came in at USD 39 million.
For the full fiscal year of 2024, EKH posted revenues of USD 642 million, supported by solid gross and EBITDA margins of 40% and 39%, respectively. The company’s net profit amounted to USD 185 million, representing a 2 percentage point increase y-o-y in the net profit margin to reach 29%. Net income attributable to shareholders for FY 2024 totaled USD 163 million.
Chairman’s Statement: Strategic Growth and Future Outlook
Loay Jassim Al-Kharafi, Chairman of EKH, expressed satisfaction with the company’s achievements, stating:
“I am pleased to share that we concluded a strong fourth quarter, capping a year of remarkable growth and strategic expansion across all major business sectors. Despite the significant headwinds encountered throughout 2024—ranging from currency fluctuations to gas supply disruptions and other operational hurdles—our resilience and strategic foresight allowed us to overcome these obstacles and build a foundation for long-term success and sustainable growth.”
Al-Kharafi emphasized that the year-end results highlight promising trends, including recovering prices and increasing volumes of core products, reflecting the robustness of EKH’s diverse portfolio.
“Our core focus remains on enhancing foreign currency generation, expanding export capabilities, and strengthening our financial position, all while contributing to regional development. We expect to launch our first investment in Saudi Arabia within the next few months. Furthermore, we’re advancing toward our first strategic investment beyond the MENA region this year—an important milestone that reinforces our global expansion strategy, portfolio diversification, and ability to manage currency exposure.”
In line with its commitment to delivering sustainable value to shareholders, the company’s Board of Directors has proposed a distribution of both cash and stock dividends.
“Looking ahead to 2025, we will focus on optimizing capital allocation and investing in high-value projects that align with our long-term strategic goals, aiming to maximize returns for our stakeholders,” added Al-Kharafi.
CEO’s Remarks: Resilience and Operational Excellence
Jon Rokk, CEO of EKH, highlighted the company’s resilience in the face of macroeconomic challenges:
“Despite a challenging year characterized by external pressures and economic uncertainties, EKH has demonstrated exceptional adaptability, delivering robust results. This success is a testament to the dedication and hard work of our teams across all levels of the organization, whose efforts have enabled us to navigate volatility, seize growth opportunities, and drive operational excellence.”
Rokk further noted the strong growth trajectory observed in the fourth quarter, with revenues and net profit rising by 9% and 20% q-o-q, respectively.
At AlexFert, revenue surged by 26% q-o-q in Q4 2024, driven by increased global urea prices and higher export volumes, supported by stable natural gas supplies that allowed the plant to operate at full capacity starting in December.
NatEnergy also reported notable revenue growth of 15% q-o-q during Q4 2024, supported by Kahraba’s electricity distribution volumes, which surged by 62% y-o-y, fueled by growth within its newly established concession zone in the 10th of Ramadan industrial area. To meet increasing demand, Kahraba is investing in a second substation in the same area.
Performance by Business Segment
ONS (Oil and Natural Gas Sector) recorded a remarkable 32% y-o-y increase in revenue during Q4 2024, following the successful commissioning of two new wells, Aton-1 and KSE2, significantly boosting production capacity.
“Building on these achievements, our upcoming projects will serve as a foundation for advancing our regional and international expansion, driving growth and diversifying our operations,” added Rokk.
Looking forward, EKH plans to undergo a corporate rebranding initiative in 2025. Rokk emphasized that this transformation is not merely cosmetic but represents a bold step toward reflecting the company’s ambitions and positioning it for future growth.
Fertilizers Sector | AlexFert
In Q4 2024, AlexFert reported revenues of USD 59 million, marking a 26% q-o-q increase. This growth was driven by improving global urea export prices and stabilized natural gas supply, which enabled the plant to operate at full capacity starting in December.
The company’s gross profit margin and EBITDA margin expanded by 1pp and 2pp y-o-y, respectively, reflecting improved cost efficiencies and operational optimization. Net profit reached USD 29 million for the quarter, with the net profit margin expanding by 5 percentage points to reach 49%.
For the full year, revenues reached USD 213 million, supported by stable gas supply and strong margins of 36% (gross profit) and 44% (EBITDA). The net profit margin also expanded by 2pp y-o-y.
The outlook for AlexFert remains optimistic, supported by favorable global urea price trends—prices increased by 8% q-o-q in Q4 2024 to USD 364/ton, with global averages reaching USD 387/ton in January 2025.
Petrochemicals Sector | Sprea Misr
Sprea Misr achieved significant growth during Q4 2024, with revenues reaching EGP 1.54 billion, reflecting a 50% y-o-y increase and a 16% q-o-q rise, driven by higher sales volumes and increased product prices.
The company maintained a stable gross profit margin of 32%, while the EBITDA margin improved to 31%. Net profit rose by 92% y-o-y, reaching EGP 546 million, with an impressive 8pp increase in the net profit margin to 36%.
For FY 2024, revenues totaled EGP 5.84 billion, representing a 19% y-o-y increase. Net profit reached EGP 2.64 billion, with a 2pp y-o-y expansion in net margin to 45%, driven by gains from interest income and foreign exchange movements.
Sprea Misr is well-positioned to capitalize on the recovery of domestic prices following the devaluation of the Egyptian Pound and increased demand for Sulfonated Naphthalene Formaldehyde (SNF) due to the revival of Egypt’s construction sector.
Utilities Sector | NatEnergy
NatEnergy recorded revenues of EGP 1.6 billion in Q4 2024, marking a 46% y-o-y increase. This growth was fueled by the expansion of Kahraba’s electricity distribution business and the execution of a high-pressure steel pipeline project by Fayum Gas.
The company saw sequential increases in gross profit and EBITDA margins by 6pp q-o-q, reaching 30%. Net profit for the quarter grew 49% y-o-y to EGP 505 million.
In FY 2024, revenues reached EGP 5.3 billion, a 30% y-o-y increase, while net profit rose 21% to EGP 1.8 billion. Moving forward, NatEnergy is expected to benefit from recent electricity tariff hikes and will continue targeting higher-margin customers. Additionally, Kahraba is investing in a second substation in the 10th of Ramadan industrial zone to support growing energy demand.
Oil and Gas Sector | ONS
ONS posted revenues of USD 19 million in Q4 2024, reflecting a 32% y-o-y and 25% q-o-q increase. This was primarily driven by rising production volumes due to the commissioning of two new wells, Aton-1 and KSE2.
Net profit for the quarter reached USD 9 million, with a net margin of 47%, up by 6pp y-o-y.
For FY 2024, revenues grew by 7% y-o-y to USD 62 million, with a net profit of USD 31 million and a strong net profit margin of 50%.
Future growth prospects remain strong as production from the new wells is expected to sustain gas output at 55 MMSCFD until the end of 2026. Additionally, the company secured a 10-year extension for its concession agreement, approved by the Egyptian General Petroleum Corporation (EGPC).
Non-Banking Financial Services (NBFS) & Diversified Investments
In Q4 2024, EKH’s diversified business segment generated revenues of USD 25 million. The gross profit margin reached 59%, up 4pp y-o-y and 10pp q-o-q, driven by the reassessment of insured assets, increased premiums, and improved portfolio returns amid a high-interest rate environment.
Both Delta Insurance and Mohandes Insurance reported strong growth, with net profits increasing by 72% and 27% y-o-y, respectively, in Egyptian Pounds.
Looking ahead, the insurance sector is expected to continue its positive trajectory, supported by rising asset valuations and stable premium growth. Additionally, Nilewood is progressing toward launching its first MDF board production line, with commercial operations set to begin in the first half of 2025.
Full Financial Report Availability
EKH’s standalone and consolidated financial statements for the period ending 31 December 2024, along with the full earnings release, are available for download at: ir.ekholding.com
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