EARNINGS WATCH- Orascom Construction’s attributable profit dipped 5% y-o-y in 1Q2019 to USD 30.2 mn compared to USD 31.9 mn a year earlier, the company said in its earnings release (pdf). The bottom line was impacted by increased financing costs, the company said. Revenues decreased by about 7% during the quarter to USD 705.6 mn. Orascom reported a net debt position of USD 78.6 mn as of the end of the quarter “mainly driven by peak execution at several large infrastructure and commercial projects in Egypt.” As of 30 April 2019, net debt decreased to about USD 40 mn though after applying “strict” cash and debt management. Shareholders approved a dividend distribution of USD 0.30 per share (totaling USD 35 million) that will be paid in July 2019.

Backlog: Consolidated backlog excluding its global services arm Besix stood at USD 4.3 bn by end of 1Q2019, in-line with figures from last year. Consolidated new awards increased 44.4% to USD 480.7 mn in 1Q2019. Pro forma backlog including Orascom’s 50% share in Besix increased 9.8% y-o-y in 1Q2019 to USD 7 bn while pro forma new awards totaled USD 857.2 mn during the quarter. “We remain focused on quality new opportunities across our core markets in Egypt, the Middle East and the United States where we continue to see an attractive project pipeline,” said CEO Osama Bishai.