Page 17 - AfrElec Week 46 2021

AfrElec RESULTS AfrElec

Egypt’s El Sewedy Electric

reports solid 9M21 results

EGUPT LEADING Egyptian industrial company El 31.6% y/y, compared with the 30.1% y/y growth
Sewedy Electric reported solid 9M21 results on for the bottom line to EGP 2,518mn.
November 15. The EPC backlog accounted for EGP57bn,
The company posting revenue growth of with supportive 15% quarter-on-quarter growth
29.9% year on year, driven by the 55.7% y/y (54% of the backlog is in Egypt and 48% in power
growth of wires & cables revenues, 12.5% y/y generation) or 17.5% y/y growth. El Sewedy
uptick in turnkey revenues, 35.9% increase for posted net debt of EGP5,940mn. In terms of
transformers and 65.5% growth for electrical working capital, inventories increased 51% from
products, VTB Capital (VTBC) said in a note. the end of 2020, while payables rose by 18.4%
Reductions were recorded for meters (down from the end of 2020. The company has consoli-
15.2% y/y) and renewables revenues (a 2.9% y/y dated its Indonesian and Pakistani acquisitions.
slide). This was due to the volumes and prices “While the 9M21 y/y improvement is sup-
dynamics, as well as booking revenues for the portive, the pace of growth moderated from
turnkey division. 1H21 (when EBITDA increased 80% and 70%).
Gross profit grew 28.2% y/y, with 33-54% y/y However, this was not unexpected given the
increases for wires & cables, the engineering, 3Q20 base. On the positive side, the company
procurement and construction (EPC) business improved its margins from 1H21, but they
and electrical production, compared with the remained almost flat y/y in 9M21. We highlight
17% y/y reduction for renewables. the strong dynamics of the EPC backlog, which
The gross profit margin stood at 13.5%, adds sustainability to future revenues, while we
almost flat y/y (10.9% for cables vs. 12.5% in also find the end of consolidation of the two
9M20, 12.6% for EPC vs. 10.7% in 9M20). acquisitions as positive,” VTBC said. ™
EBITDA recorded EGP 4,239mn ($270mn), up
Kenya delays planned $5bn

nuclear construction until 2036

KENYA KENYA appears set to delay by a decade plans Currently, hydropower accounts for 35% of
to build a $5bn nuclear power plant, slated to Kenya’s electricity generation, with the rest com-
have been the county’s first, an official from the ing from geothermal, wind and diesel-powered
country’s Nuclear Power and Energy Agency plants, according to NuPEA.
(NuPEA) has told Bloomberg. Nuclear power is seen as a long-term solution
As recently as August, the state agency said to high fuel costs and reducing carbon emissions
it had contracted the China National Nuclear from the power generating sector.
Corporation (CNNC) to determine the most NuPEA forecasts that Kenya’s total generating
suitable location for an ambitious two-year Site capacity will rise to 4,000 MW by 2033, implying
Characterization study. that nuclear electricity will become a key compo-
Now, the planned 1,000-MW nuclear power nent in the energy mix.™
plant is projected to connect to the Kenyan grid
in 2036 instead of 2026, Erick Ohaga, NuPEA’s
director of nuclear energy infrastructure devel-
opment, told Bloomberg in an interview. “Time-
lines have changed because power supply needs
to follow demand,” he said.

Week 46 18•November•2021 www. NEWSBASE .com P17