Pre-Trading Thoughts

Pitch: SKPC | New Gas Formula Improves Margins Substantially; Upgrade FV to EGP22.35. New gas formula announced in October translates into USD5.4/mmbtu of SKPC’s feed gas, way lower than what they used to pay for feed before. Thus, margins are expected to increase remarkably during the coming years.Currency devaluation comes at the right time to offset decline in petroleum and petroleum products prices.We forecast SKPC to post net profits of EGP1,731 million, marking a 40% YoY growth in FY23....