Pre-Trading Thoughts

The MPC is scheduled to meet today to decide on policy rates. We believe the CBE might prefer to cut rates by 100-150 bps in its meeting today.

Moody’s kept Egypt’s outlook positive and affirmed its Caa1 rating. 

UK-based Shard Capital and Saudi Arabia-based Alqahtani Holding inked a framework agreement for a USD7 billion petrochemical production complex in New Alamein with the Oil Ministry-backed Egyptian Petrochemicals Holding Company and the Investment Ministry. 

The reconstruction of Gaza can be completed in three years, Prime Minister Moustafa Madbouly said during his weekly presser yesterday. 

Egypt paid another USD1 billion arrears to foreign oil companies yesterday, according to an official..

The Ministry of Petroleum plans to increase Egypt's oil production by 8% during the next fiscal year 2025-2026 to reach 485k barrels per day.

The Egyptian General Petroleum Corporation (EGPC) inked updated agreements with US-based IPR Energy and Tunisian oil and gas firm HBS International worth a combined USD13.5 million.

The Egyptian government allowed the Cheiron Energy company, owned by businessman Salah Diab, to export about 550k barrels of crude oil last January, in exchange for part of its overdue dues to the EGPC.

COMI’s BoD proposed to distribute cash dividends of EGP2.50/share.

ATLC released positive FY24 financial results: 4Q24 bottom line recorded EGP108 million (3.2x y/y, 2.2x q/q), bringing FY24 net profit to EGP216 million (+26% y/y). We have updated our FV for ATLC from EGP5.17/share to EGP6.66/share.  ATLC is currently trading at P/E25 of 3.1x and P/B25 of 0.9x. 

TMGH achieved FY24 sales, including sales made for third parties, of EGP504 billion, up 252.9% y/y.

MFPC signed a cooperation agreement and an MoU with Germany’s ThyssenKrupp to develop a USD220 million carbon capture project, the first of its kind in Africa and the Middle East.

The EGX’s listing committee approved ESRS request to delist its 542 million shares from the bourse.