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12-May-2016

Natural gas supplies to fertiliser producers have been volatile and are below full rates; Alexfert operating at 70%

According to an article in Al Borsa, natural gas supplies for fertiliser producers have been facing cuts in recent weeks. According to a source at Alexfert, a subsidiary of Egyptian Kuwaiti Holding (EK Holding) [EKHO.CA], the company is currently operating at 70% of its capacity, and natural gas supplies were reduced in order to meet the demands of power plants. The source added that the natural gas supplies had been volatile and do not remain at full rates for more than a week. Overall, we are estimating that the plant's utilisation rates would average 75% throughout the year, mainly as the government diverts natural gas supplies to cover power demands. (Al Borsa, Ahmed Hazem Maher)   Egyptian Kuwaiti Holding: USD0.45 as of 11 May 2016, Rating: Buy, FV: USD0.80 per share, MCap: USD461 million, EKHO EY / EKHO.CA

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