Earnings: Orascom Construction profits down 6% in 3Q2020
EARNINGS WATCH- Orascom Construction (OC) profits fell 6.2% y-o-y to USD 30.2 mn in 3Q2020 from USD 32.2 mn last year, the company said in its earnings release (pdf). Revenues for the quarter were up 4.4% y-o-y to USD 824.5 mn. CEO Osama Bishai said the results indicate “steady performance” and the increase in revenues demonstrates that the group’s sites are operating on a “full-fledged” basis after the earlier challenges of covid-19 “Our business development efforts and our competitive edge continue to allow us to sustain a solid backlog by maintaining a healthy project pipeline and securing an inflow of high-quality projects,” he said. The company’s consolidated EBITDA fell y-o-y during the third quarter and in 9M2020 due to the pandemic, but increased on a quarterly basis, reflecting an improved performance and ongoing recovery, OC said.
OC’s consolidated backlog excluding Besix inched up 0.4% y-o-y to USD 5.3 bn as of 30 September 2020. Consolidated new awards rose 49.7% y-o-y to USD 674.4 mn during the first nine months of the year. Including the group’s 50% share in Besix, pro forma backlog as of the end of September rose 0.2% y-o-y to USD 7.7 bn. OC distributed a smaller dividend in August than was originally intended, but obtained board approval to dole out “an interim dividend” in January 2021, the amount of which will be announced next month.