EARNINGS WATCH- Orascom Construction profits drop 38% y-o-y in 2Q2019 to USD 31.3 mn, compared to USD 50.6 mn a year earlier, the company said in its earnings release (pdf). While net income was hit mostly by higher financing costs in Egypt during 1H2019, the company managed to reduce its debt at the end of 2Q, returning to a net cash position of USD 69.2 mn, compared to a net debt position of USD 78.6 mn at the end of 1Q.Revenues increased 5.3% y-o-y to USD 790.1 mn in 2Q2019, while consolidated EBITDA for 1H2019 rose 26.8% y-o-y. The MENA region comprised 73% of revenue in 2Q2019. Revenues from US operations declined compared to last year due to the completion of the large methanol plant in Texas in 2018.

OC’s consolidated backlog excluding BESIX increased 9.4% y-o-y to USD 4.6 bn as of 30 June 2019. Consolidated new awards increased 40.5% y-o-y to USD 934.7 mn in 2Q2019. Including the group’s 50% share in BESIX, pro forma backlog as of 30 June increased 19.3% y-o-y to USD 7.3 bn. Pro forma new awards increased 49.4% y-o-y to USD 1.5 bn in 2Q2019. “This current backlog level comfortably provides us with sufficient revenue and profitability as we continue to pursue an exciting project pipeline across existing and new markets,” said CEO Osama Bishai.