Several EGX-listed companies have explained the effects the price hike in natural gas would have on their production costs.
Unaffected Companies🙂 Misr Fertilizer Production Company (MFPC) noted that there has been no effect on the company so far. MFPC is down 5.6% since the announcement.
Misr Beni Suef Cement Company (MBSC) denied being affected by the rise in gas prices, explaining that it is currently using coal as a means of fuel and does not use gas. MBSC is down 4.7% since the announcement.
Misr Cement Qena (MCQE) said that the increase in gas prices will not affect the production plan or cost, as natural gas is not part of the company’s used fuel mixture. MCQE is up 5.6% since the announcement.
Affected Companies😞 Misr National Steel Company (ATQA) said the increased gas prices will raise the company’s gas production cost to EGP 26 per ton, representing 28% of the gas cost. ATQA is up 3.5% since the announcement.
Al-Ezz Porcelain (ECAP) expected that the rise in gas prices would result in a partial increase in production costs by 0.5% per square meter of product. ECAP is down 1% since the announcement.
Ezz El Dekheila (IRAX) & Ezz Steel (ESRS) indicated that the increase in gas supply prices would lead to increased production costs, even though the industrial design of the group’s factories allows for flexibility in the use of raw materials in the production process. IRAX is up 2.1% while ESRS is down 14.3% since the announcement.
Abu Kir Fertilizers (ABUK) is still studying the extent to which they are affected by the increase. ABUK is down 7.5% since the announcement.