INTERVIEW: Egypt Kuwait Holding to expand into Saudi Arabia and Northern Europe in 2025
Cairo-headquartered investment firm Egypt Kuwait Holding Company (EKH) is set to enter the Saudi market for the first time and launch a new project in Northern Europe in 2025 as part of its global diversification strategy, CEO Jon Rokk revealed.
The company, listed on both the Egypt and Kuwait stock exchanges, is planning to invest between $150 million and $200 million over 2025 and 2026 as part of its strategic growth plan, he said in an interview with Zawya Projects.
'Our group prioritises increasing foreign currency revenues and boosting exports, while also strengthening our financial position and continuing to drive regional development,' he said.
EKH's diversified portfolio includes fertilisers and petrochemicals, gas distribution, power generation and distribution, and insurance and non-banking financial services, predominantly in Egypt.
The EKH executive didn't elaborate on the Northern Europe foray but said the Saudi investment, which falls within the energy sector, is fully financed by the company, with all credit arrangements already completed.
He further described the move as strategic, positioning EKH for long-term growth in the Saudi market but didn't disclose investment specifics.
Rokk said the company is open to Sukuk or bond issuances as part of its financing strategy for expansion projects. Without going into details he confirmed they are reviewing all available financing options, taking into account project requirements, market conditions, cost efficiency, and the expected returns from each financial instrument.
'We aim to strike a balance between self-financing and external financing to ensure continuous growth while maintaining our strong financial position,' he said.
EKH reported $642 million in revenues for 2024, with gross profit and EBITDA margins coming in at 40 percent and 39 percent, respectively. Net profit amounted to $185 million with net profit margin increasing by 2 percentage points (pp) year-over-year (y-o-y), reaching 29 percent. EKH's attributable net income totaled $163 million for 2024.
Rokk said the company holds $527 million in cash and financial assets while its current bank liabilities stand at $583 million.
'We are committed to managing our financial resources efficiently, focusing on maximising cash flow and shareholder returns while maintaining financial stability,' he said.
Egypt expansion plans
Within Egypt, its key market, EKH is actively exploring investment opportunities in state-owned assets and enterprises that the government is offering for investment or sale.
'We are particularly focused on investments in digital transformation and new projects that align with our sustainable growth strategy,' he said.
As part of its expansion strategy, the company is also looking at securing additional concessions for oil and gas exploration sector in Egypt, he added.
EKH operates in Egypt's energy and energy-related sectors through its subsidiaries, NatEnergy and Offshore North Sinai (ONS). The ONS concession is operated by North Sinai Petroleum Company (NOSPCO).
ONS posted revenues of $62 million in 2024, up 7 percent y-o-y, while net profit reached $31 million, with a net profit margin of 50 percent. Fourth quarter 2024 revenues rose 32 percent y-o-y to $19 million, driven by the commencement of production from the Aton-1 and KSE2 wells.
'Production from the two sites will enable us to maintain a steady gas production rate of 55 million standard cubic feet per day through 2026,' said Rokk.
He added that Egyptian General Petroleum Corporation (EGPC) has approved the extension of the concession by 10 years, which enhances the sustainability of operations and supports EKH's future growth plans in Egypt.
'We appreciate the efforts of the Ministry of Petroleum and EGPC in supporting investments and fostering a conducive environment for growth,' he said.
Outstanding receivables
When asked about the outstanding receivables from the Egyptian government for gas supplies from the ONS concession, he said the government's commitment to supporting the oil and gas sector remains crucial for industry stability.
'The company's receivables from the Egyptian government are part of contractual obligations that are settled according to agreed-upon mechanisms,' he said.
He highlighted that since July 2018, the gas purchase price agreed with the government has ranged between $5.18 and $5.88 per million British thermal units, reflecting global market trends. Linked to oil prices and estimated extraction costs, this pricing structure remains advantageous for the company.
'Currently, there are no ongoing negotiations to revise this price,' he confirmed.
He also pointed out that the company will start a rebranding exercise this year that will position it as a top-tier global investment firm, capable of competing in international markets.
'The new brand identity embodies the company's ambitions and ongoing expansion, as we transition from a regional powerhouse to a globally recognized investment firm, driven by a clear vision for growth and development,' he concluded.
(Reporting by Marwa Abo Almajd; Editing by Anoop Menon)
(anoop.menon@lseg.com)
(Writing by Majda Muhsen; Editing by Anoop Menon)
(anoop.menon@lseg.com)
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