Egypt at a Turning Point – Improving
Market Confidence
17
200
300
400
500
600
700
800
900
1,000
Dec-12
Jun-13
Dec-13
Jun-14
bps
Period of stability for the last 6 months; election of new President, local economy returns to normality
GCC countries, in particular, UAE, Saudi Arabia and Kuwait, have pledged and disbursed >$20bn consisting of:
US$ deposits at the Central Bank, low interest loans, direct investments and energy deals
Shortage of gas and fiscal pressure prompting serious considerations of gas price reforms at EGPC/Government (current deficit
could be net by short term LNG), EGPC payments of receivables acceleration
Steady improvements of market and credit fundamentals
0
500
1,000
1,500
2,000
2009
2010
2011
2012
2013
mboepd
Source: Factset, Bloomberg, Wood Mackenzie
Egypt 5 Year CDS
Egypt 5 Year Government Bond YTM
Oil production
Gas production
Strengthening Credit Spreads
Stable Egypt Production – Despite Under Investments
