Valmor Holdings Raises Revenue 10% to $568 Million

Valmor Holding announced its consolidated financial and operational results for the nine-month period ended September 30, 2026. Group revenues rose by 9.51% year-on-year to reach $568 million, accompanied by a 2.30% increase in gross profit to $182 million. Operating profit before tax, interest, depreciation, and amortization (EBITDA) stood at $218 million, representing a margin of 38%, while the group’s net profit reached $109 million, of which $88.4 million was attributable to shareholders of the parent company. Dollar-denominated revenues grew by 15.7% year-on-year to $294 million, accounting for 51.7% of the group’s total revenues during the first nine months of 2026. Alexandria Fertilizers contributed 74.1% of the group’s total dollar revenues during the period.

Regarding the third quarter, revenues amounted to $176 million, a year-on-year increase of 2.86%. EBITDA recorded $52.2 million, while the group achieved a net profit of $22.0 million, of which $18.0 million was attributable to shareholders of the parent company.

The group continued to deliver strong profitability during the first nine months of 2026, despite a higher comparative base that included non-recurring gains of $49.5 million during the same period last year. Excluding these items, along with non-recurring items amounting to $6.46 million during the first nine months of the current year, the parent company shareholders’ share of net profit increased by 20.2% year-on-year.

Regarding the group’s five largest subsidiaries—Alexandria Fertilizers, SBEPI Egypt, NAT Energy, Kahraba, and North Sinai Marine—the group’s share of their combined net profits rose by 22.4% year-on-year to $142 million during the first nine months of 2026, alongside a 19.8% growth in their consolidated revenues to $540 million.

Investment Balance

Louai Jasim Al-Kharafi, Chairman of the Board of Directors of Valmor Holding, stated that the third quarter of 2026 laid the foundation for the group’s investment portfolio to undergo a real test, which it successfully passed. With urea export prices declining from their exceptional levels seen in the second quarter, the group’s subsidiary investments serving various markets drove the group’s performance forward. He added that Valmor is designed to balance its subsidiary investments against each other whenever conditions change, a principle clearly demonstrated during the third quarter.

Al-Kharafi explained that this performance is based on two types of investments. The group’s investments in the export-oriented chemicals sector form the core pillar for generating dollar revenues. Alongside these are the group’s investments supported by long-term concession agreements in natural gas distribution, electricity generation, and natural gas exploration and production activities. These latter investments increased their contribution to approximately 34% of the group’s revenues during the third quarter, compared to about 31% during the same quarter last year, providing the group with clarity regarding its long-term revenues amid fluctuating commodity price cycles.

Al-Kharafi also highlighted an important step in the group’s international investment development journey. The company distributing natural gas in the Kingdom of Saudi Arabia, formerly known as Iccom, now operates under the name Masarat Energy, providing the group with long-term dollar revenues under a long-term concession agreement.

The company, alongside the “Indulis” project in the United Kingdom, which is progressing toward commissioning, represents the next phase in Valmor’s growth trajectory outside the Egyptian market.

Al-Kharafi added that the group’s strategy has proven resilient during a year marked by volatility and challenges in the regional landscape, positioning the group to achieve future growth as markets return to normal. He expressed confidence in the strength of its investments, the competence of its management teams, and the group’s ability to translate this performance into sustainable value for shareholders.

Al-Kharafi concluded by expressing his pleasure in welcoming Nasser Al-Kharafi as Chairman of Valmor Holding’s Board of Directors, following her appointment during a board meeting held on November 12, 2026. He affirmed his pride in his tenure as chairman and his continued membership on the board alongside her, highlighting her deep knowledge of the group’s operations and looking forward to supporting her and the board in building on the progress achieved by the group.

On his part, John Rock, Managing Director of Valmor Holding Group, stated that the first nine months of 2026 witnessed tangible growth across the group’s subsidiaries. In the chemicals sector, Alexandria Fertilizers successfully capitalized on exceptional urea export prices in the first half of the year. As prices returned to more moderate levels in the third quarter, the removal of export duties effective August 1 helped mitigate the impact on the company’s export profit margins.

At Spraya Egypt, key products continued to record a strong recovery in sales volumes compared to the previous quarter, bringing revenues for the first nine months back to the level of the same period last year, following a challenging first half on established export routes to Gulf markets.

Rock noted that gas and electricity distribution projects offer some of the clearest growth paths within the investment portfolio, driven by continuous network expansion and growing industrial demand. “Kahraba” achieved the fastest net profit growth rate among the “Big Five” subsidiaries, while its electricity distribution activity contributed more than half of its revenues in the third quarter.

“Nat Energy” continued expanding its networks through housing projects under the New Urban Communities Authority, as well as through the “Karima Life” initiative, by establishing new industrial supply networks in the new 6th of October City and Borg El Arab. Meanwhile, “North Sinai Maritime” continued to lead the investment portfolio in terms of profit margins, recording a net profit margin of 54 percent during the period.

Regarding new investments, Rock pointed out that the “Indulis” project has completed the installation of reactors and the cutting unit, with commissioning tests expected to begin soon, thereby adding a new source of dollar revenues for the group. Meanwhile, “Masarat Energy” is expected to serve approximately 19 factories by the end of the year.

As the fourth quarter of the year begins, Rock outlined the group’s priorities in managing Alexandria Fertilizers’ operations amid current energy supply challenges, maintaining Spraya Egypt’s strong performance, enhancing Kahraba’s distribution capabilities and Nat Energy’s customer connection base, and advancing Phase IV works at North Sinai Maritime in preparation for production expected in early 2027.

Rook expressed his gratitude to Louai Al-Kharafi for his leadership of the Board of Directors during his tenure as chairman, noting that his support and advice had a profound impact on him and the team during a critical transformation phase in the Group’s journey, while also expressing his pleasure at continuing his membership on the Board. Rook also congratulated Hiba Nasser Al-Kharafi on her appointment as chairman of the Board of Directors, looking forward to working closely with her and the Board to achieve the priorities outlined.