Citadel Capital To Spur EA Regional Trade


pilule geneva; font-size: small;”>This follows a report on its standalone net profit of EGP 5.3 million and a 20.6 percent narrowing of its consolidated net loss to EGP 126.4 million in the first quarter of 2013.

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buy more about geneva; font-size: small;”>It reaped EGP 1.4 billion from its eight operational core platforms in the industries of energy, transportation, agrifoods, mining and cement.

According to Ahmed Heikal, Founder and Chairman Citadel Capital, this came as top-line improvements in the Agrifoods and Cement sectors were largely balanced out by dips in revenues in Transportation (as freight volumes in East Africa fell temporarily as the market sagged on political risk worries) and Energy sectors.

“Broadly speaking we are pleased with the performance of our operational core platform companies in the first quarter, and are very optimistic that we are on the right side of medium- and long-term macroeconomic trends,” he said.

Mr Heikal noted that the company’s agrifoods, East African transport, non-Egyptian cement services and all export-oriented businesses are expected to continue leading growth in the portfolio.

“This is because continued economic turbulence in the short term will mute growth at a number of our Egyptian businesses,” he added.

As part of its drive to transform into an investment company, Citadel Capital is pursuing majority control of 10 focus platforms in its five core industries with a view to maximizing shareholder value through long-term holding periods to take full advantage of prevailing macro trends.

These are the Company’s aggregate figures that show a more accurate picture of financial and operational performance than do consolidated results, which will become better indicators of the firm’s performance as the transformation process moves forward.

Citadel Capital’s medium- and long-term goals, intend to help nature, capture opportunities and solve government’s challenges in different parts of Africa.

“We want to help nations capture opportunities and governments solve challenges, whether it’s Rift Valley Railway in Kenya and Uganda helping spur regional trade and growth, or the Egyptian Refining Company in Egypt helping reduce the nation’s present-day diesel imports by well over half,” Heikal noted.

The transportation aggregate sector revenues fell from 14.5 percent to EGP 110.5 million, while EBITDA was largely stable at negative EGP 31.3 million.

“This came as a turnaround play in Rift Valley Railways in Kenya and Uganda after it reported a dip in revenues as the market sagged on since-resolved fears of electoral violence in Kenya,” said Mr. Heikal.

Well as the Nile Logistics in Egypt saw revenues sag 22.2 percent as new revenues from anchorage operations in the Port of Alexandria compensated for a near complete halt of river transport operations in the first quarter due to lock maintenance.

In terms of energy, its aggregate sector revenues dropped 9.2 percent year-on-year in 1Q13 to EGP 291.5 million as EBITDA fell 56.9 percent to EGP 18.7 million.

“For Agrifoods, aggregate sector revenues rose 7.2 percent to EGP 324.8 million while EBITDA climbed 151.5 percent, both on the back of significant operational progress at Gozour in Egypt and lower losses at Wafra, a newly operational greenfield in Sudan and South Sudan,” anoted Mr. Heikel.

In the mining industry, its sector revenues eased 3.1 percent to EGP 131.8 million while EBITDA fell 53.2 percent to EGP 5.7 million. “These results reflect the preponderance of pre-operational and newly operational greenfields in the portfolio as well as the end of ASCOM’s quarrying contract at Al-Takamol Cement in Sudan,” he said.

The aggregate sector revenues for the Cement sector remained stable at EGP 547.8 million as revenues from the Construction division offset flagging revenues from the Cement division.


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