Latest news with #Rokk
Zawya
16-03-2025
- Business
- Zawya
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) ( (Writing by Majda Muhsen; Editing by Anoop Menon) (
Zawya
03-03-2025
- Business
- Zawya
Egypt-Kuwait Holdings to unveil project in Saudi Arabia
Egypt-Kuwait Holdings Company (EKH), a key investment firm in MENA, will unveil its first project in Saudi Arabia within the next three months, its CEO has said. The project covers oil and gas and the company has already secured most of the needed capital, Jon Rokk told the Saudi daily Asharqalawsat on Sunday. 'We will announce the project within 2 to 3 is our first investment in Saudi Arabia and a promising project in the oil and gas sector,' he said. 'We have planned for this project for a long have secured most of the capital spending for the project and we have reached the final stage in preparation for starting expect to achieve revenues within a few months,' he added. Rokk did not provide further details but said the company is studying new investment opportunities worth $150-200 million in the region during 2025 and 2025 as part of an 'expansion strategy' in MENA. EKH, which is listed on Egyptian and Kuwaiti bourses and owned by businessmen from the two countries, announced last week that it recorded a net profit of around $185 million and total earnings of nearly $642 million during 2024.
Asharq Al-Awsat
02-03-2025
- Business
- Asharq Al-Awsat
Egypt Kuwait Holding Set to Launch First Commercial Project in Saudi Arabia
Egypt Kuwait Holding (EKH) plans to announce its first investment in Saudi Arabia's oil and gas sector within two to three months, after completing the bulk of the project's capital expenditures, CEO Jon Rokk said. In an exclusive interview with Asharq Al-Awsat, Rokk described the project as 'promising" and said it had been 'in the planning stages for a long time.' EKH, one of the fastest-growing investment firms in the Middle East and North Africa, manages a diverse portfolio spanning five key sectors: fertilizers, petrochemicals, gas distribution, power generation and distribution, and non-banking financial services, including insurance. As part of EKH's expansion strategy, it is close to officially announcing its first investment in Saudi Arabia—a promising oil and gas project that has been in the works for some time, Rokk said. EKH is leveraging its extensive expertise and strong track record in Egypt, including the development, operation, and maintenance of the largest private gas distribution network in the Middle East, he added. EKH eyes Saudi, European expansion EKH is set to announce its first investment in Saudi Arabia's oil and gas sector within the next few months, having already completed the bulk of its capital expenditures, Rokk told Asharq Al-Awsat. EKH has been working on this project for a long time and it is now in the final stages, preparing to commence commercial operations soon, Rokk revealed. This will enable the company to generate revenue in the coming months. While he did not disclose further details, he said that EKH is evaluating additional investment opportunities worth between $150 million and $200 million over 2025 and 2026 as part of its expansion strategy. EKH reported a net profit of $185 million in 2024. According to the company, revenue climbed to $642 million last year, with gross profit and operating profit margins increasing by 40% and 39%, respectively. Net profit rose to $185 million, with net profit margins improving by two percentage points to 29%. Profit attributable to shareholders reached $163 million. In its 2024 financial statement, EKH said it expects 2025 to bring further improvements in capital allocation and a sharper focus on high-value projects, underscoring the significance of its first Saudi investment. Saudi investment and growth outlook While Rokk described EKH's Saudi project as relatively small compared to its overall portfolio, he stressed its strategic importance. This is a key step for EKH's entry into the Saudi market, where it sees significant growth potential, he said. He also expected the project to unlock future opportunities. This investment could pave the way for securing additional concessions, strengthening EKH's presence in one of the region's most critical energy markets. Expanding into Europe Beyond the Middle East, EKH is developing a new project in Northern Europe, which Rokk described as a major growth driver. This strategic investment will give it early access to an emerging sector, enhancing its competitiveness and market presence from the outset, he said. EKH anticipates strong returns, supporting its growth and international expansion. The company's broader strategy includes increasing foreign currency exposure, tapping into high-growth markets, and diversifying its investment portfolio. EKH is finalizing the project details and expect to provide further updates by the third quarter as it moves toward execution, Rokk added. In 2025, EKH aims to expand further—both by entering Saudi Arabia and launching its European project—while continuing to grow its existing businesses. Strengthening presence in Egypt EKH is also reinforcing its foothold in Egypt, with plans to boost exports and foreign currency inflows in 2025. It is exploring several options, including acquisitions and strategic partnerships, focusing on sectors with strong export potential and dollar-denominated returns, Rokk said. The company aims to leverage Egypt's competitive advantages—such as low production costs and strategic location—to increase exports and maximize foreign currency earnings.
