Citadel Capital, an Egyptian private equity firm, said its first-quarter loss widened as some companies it owns stakes in were less productive amid political unrest in the North African country.
"Fallout from the Egyptian revolution had a substantial impact on consolidated performance in the first-quarter, due in large part to work stoppages of up to one month at plants run by select portfolio companies," the Cairo-based firm said in a statement posted on its website.
The firm's net loss for the period that ended March 31 was 114.2 million Egyptian pounds (Dh70.4 million), compared with 33.7 million pounds a year earlier, the company said in a filing to the Egyptian bourse yesterday. Anti-government demonstrations in Egypt started on January 25, leading to President Hosni Mubarak's resignation less than three weeks later. The unrest caused factories and construction sites to shut down as workers demanded higher pay and better working conditions.
Citadel unit Asec Holding was "most sharply impacted by events associated with the revolution," the company said in the statement. Asec, along with industrial construction contractor Esaco, experienced on-site stoppages and worker protests in the first quarter, Citadel said.
Asec Engineering, which manages cement plants, reported a net loss as part of Citadel's earnings because the "cement industry essentially closed in late January and much of the month of February."
Assets under management grew for Citadel in the quarter to $4.1 billion, the company said. Taqa Arabia, one of its energy units, reported a 53 per cent rise in earnings before interest, taxation, depreciation and amortisation. Citadel said in April it plans to sell shares in Taqa in an initial public offering in the fourth-quarter.
Shares of Citadel advanced 1.1 per cent to 5.4 pounds in Cairo, heading for the highest close in a week. That gave the company a market value of 3.57 billion pounds.
From / Gulf News