During the first half (H1) of 2015, 135 companies registered net profits totalling approximately EGP 14bn, the Egyptian Stock Exchange (EGX) said in a Monday statement.
The profiting companies in H1 of 2015 compare to 147 companies that registered net profits of about EGP 11.9bn in the same period in the preceding year.
Meanwhile, 39 companies recorded losses in H1 of 2015, where the total losses of the companies amounted to approximately EGP 570m. The figure compares to the 27 companies that reported losses in the same period of 2014, with total losses equalling EGP 544m.
The EGX statement highlighted that the H1 results show that total net profits of the companies went up by approximately EGP 2bn, marking a 17% year-on-year (YoY) increase.
On Monday, President Abdel Fattah Al-Sisi officially approved unifying the income tax at 22.5%, five months after announcing the amendment. A few days before the Economic Summit in March, Minister of Finance Hany Kadry Dimian announced the unification went down from the previously set 25%.
EGX Chairman Mohamed Omran praised President Al-Sisi’s decision, saying that this will ease the burden on companies, and will aid in improving financial conditions. This, in turn, will benefit the investment climate in Egypt as a whole, the statement read.
On Sunday, Al-Sisi also approved the postponement of applying the capital gains tax for two years, a decision which Omran also emphasised was positive.
EGX-registered companies with profits in H1 of 2015:
Orascom Hotels and Development’s (OHD) recorded net profits worth EGP 154.7m, up from the EGP 34.35m in losses registered in the same period of 2014.
Crédit Agricole Egypt’s net profits were equivalent to EGP 482.99m ($61.5m), up from EGP 310.22m ($39.5m) registered in the same period in 2014.
Orascom Telecom Media and Technology (OTMT) achieved net profits of approximately EGP 728m in H1, compared to EGP 676m the year before.
Beltone Financial Holding registered net profits worth EGP 10.7m in H1 of 2015 – however, the figure was down from the EGP 11m registered the year before.
EFG Hermes’ net profits in H1 of 2015 amounted to EGP 359.1m, but they were down from the EGP 381.6m that were registered in 2014.
EGX-registered companies with losses in H1 of 2015:
Mobinil’s losses amounted to EGP 91.1m ($11.7m) in H1 of 2015, but were down from the EGP 344.4m ($44m) registered losses in the preceding year.
Egypt Gas company, an affiliate of the Egyptian Natural Gas Holding Company (EGAS), recorded losses of EGP 48.6m in H1 of 2015, compared to profits of EGP 25.26m last year.
Prime Holding lost EGP 4.4m in H1 of 2015, compared to recording EGP 23.48m in profits a year earlier.
Misr Financial Investments shifted to loss in H1 of 2015, registering EGP 12.2m against profits of EGP 3.2m the year before.