Egyptian Refining turns to net profit of $120mn in first four months of 2026

The Egyptian Refining Company (ERC), a subsidiary of Qalaa Holdings (EGX:CCAP), has reported a significant improvement in its financial performance and net profits over the first four months of 2026. In a statement to the Egyptian Exchange on April 21, ERC, which specialises in producing high-quality petroleum products, achieved a net profit of $96.45mn in March 2026, compared to a loss of $16.28mn in March 2025.

The figures mark the first signs of the company benefiting from the ongoing geopolitical tensions in the Middle East. The company saw further gains in April 2026, reporting a net profit of $120mn, up from a loss of $40.53mn in April 2025, based on preliminary estimates.

ERC also posted a net profit of $23.65mn in January 2026, compared to a profit of $3.84mn in January 2025, and a profit of $22.37mn in February 2026, compared to a loss of $6.06mn in February 2025.

Qalaa confirmed that these figures reflect a significant operational improvement for ERC, despite the challenges posed by regional uncertainties. Meanwhile, Qalaa Holdings’ shares dropped by 2.56% in April 21 trading, closing at EGP 3.81. The company currently holds a 13.03% stake in ERC.

In December 2025, ERC repaid $417mn to creditors, reducing its main debt balance to $63mn, down from $2.35bn. The company’s secondary debt stands at $773mn, due for repayment in instalments until 2030.

ERC operates a $4.3bn state-of-the-art refinery in Mostorod that processes fuel oil into high-value Euro V grade products, significantly reducing Egypt’s reliance on imported diesel and sulfur emissions.