(DNE File Photo)
The Chemical Industries Holding Company (CIHC) aims to achieve EGP 4.3bn in total investments in subsidiaries in the new fiscal year, according to CIHC chairman Reda El-Adl on Monday.
El-Adl said CIHC aims to register EGP 431m in net profits, up from EGP 411m in actual net profit in fiscal year (FY) 2013/2014. CIHC is expecting EGP 14bn in revenues from the activities of subsidiary companies in FY 2015/2016 compared to FY 2013/2014.
The net profit of the subsidiaries’ targeted activities is anticipated to reach EGP 1.7bn in the current fiscal year, up from EGP 761m in FY 2013/2014, a 120% increase, according to El-Adl.
Meanwhile, the targeted surplus available for distribution reached EGP 1.2bn compared to EGP 500m, with CIHC eyeing EGP 725m in exports compared to EGP 629m previously, El-Adl said.
His statements came during the regular meeting of CIHC’s general assembly on Monday. The meeting was attended by Minister of Investment and chairman of the company’s general assembly, Ashraf Salman, members of the company’s board of directors, representatives of the Central Auditing Agency, general assembly members, and Investment Ministry representatives.
During the meeting, El-Adl discussed his company’s efforts to structure and develop its subsidiaries, noting that he is focusing this year to decrease their losses, especially for Delta Fertilizer Company and the National Cement Company.
One of CIHC’s subsidiaries, Tanta Flax and Oils, has faced hurdles following the 25 January Revolution. Last March, Saudi investment company Kaki Group Co Limited sent Prime Minister Ibrahim Mehleb a formal demand for an immediate EGP 1bn reimbursement, including delayed penalties and losses.
Kaki Group, owned by Saudi investor Abdul Elah Kaki, who is also owner of Nubaria Company which produces “Nubaseed” seeds, has estimated that the price of Tanta Flax and Oils and their assets and pumped investments since its privatisation at approximately EGP 1bn.
Kaki Group sent seven letters to CIHC, which is affiliated with the Egyptian Ministry of Investment, and formed a committee to address the dispute. Kaki accused the government of failure represented in the CIHC to implement the rule of the administrative court to return to pre-contract.
However, CIHC’s board of directors refused Kaki’s request to repay the EGP 1bn compensation. The board has stated that the compensation will not be more than EGP 120m, and includes the EGP 83m which Kaki paid by signing the contract for privatisation. This would also cover the costs spent on development work and the implementation of the early retirement project.
