Abu Qir Fertilizers to get around $100m loan from NBK

Abu Qir Fertilizers plans to secure an $80-100 million loan to be arranged by the National Bank of Kuwait – Egypt (NBK), to finance the expansion of production capacity from 1,925 tons per day to 2,370 tonnes per day of granular urea, sources said. Daily News Egypt.

PDP studies and initial engineering designs for the extension have been completed, and the tender has been issued to EPC contractors.

The company explained that the new production project of 1 million tons/year of methanol and 400,000 tons/year of ammonia (first phase), will be implemented in the economic zone of the Suez Canal in Ain Sokhna, at an investment cost of approximately $1.6 billion. The complex is owned by Abu Qir Fertilizers (35%), Helwan Fertilizers Company (35%) and Al Ahly Capital Holding (30%).

The complex was established on an area of ​​2 million m². Al Ahly Capital Holding has been mandated as financial advisor to arrange the necessary financing for the project, which should be 70% financed by debt and 30% by equity. In parallel, the economic and commercial feasibility study of the project is updated in the light of local and global updates. Currently, the PMC contract is being finalized.

Abu Qir recorded gross profit of EGP 10.628 billion in fiscal year 2021/22, up 1.72x year-on-year (yoy) compared to fiscal year 2020/21, supported by strong revenues despite higher COGS to generate a gross profit margin of 65% compared to 44% recorded the previous year.

The increase in total SG&A expenses was driven by growth in export expenses as well as increases in periodic increases, depreciation and other miscellaneous expenses.

EBITDA increased by 2.22x year-on-year to EGP 7.593 billion from EGP 2.357 billion recorded for the same period last year.

Abu Qir’s EBITDA increased to EGP 10.027 billion and EBITDA margin recorded 61% for FY 2021/22 compared to 39% for FY 2020/21.

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