Back to the complete issue
Thursday, 23 May 2019

Earnings Watch: Orascom Construction reports 1Q2019 results

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.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Etisalat Misr (tax ID: 235-071-579), the leading telecoms provider in Egypt; and Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt.