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Thursday, 25 March 2021

Earnings Watch: OC

The EGX30 rose 1.6% at today’s close on turnover of EGP 819 mn (44.6% below the 90-day average). Foreign investors were net buyers. The index is up 0.2% YTD.

In the green: Eastern Co. (+7.7%), Fawry (+2.9%) and Heliopolis Housing (+2.6%).

In the red: AMOC (-2.6%), Sidi Kerir (-2.2%) and Export Development Bank (-1.1%).

EARNINGS WATCH- Orascom Construction (OC) net profits fell 6.2% y-o-y to USD 25.9 mn in 4Q2020 from USD 27.6 mn last year, the company said in its earnings release (pdf). Revenues for the quarter were up 3.2% y-o-y to USD 927.8 mn. FY2020 net profits fell 25% y-o-y to USD 90 mn from USD 121 mn, while revenues were up 5.9% y-o-y to USD 3.4 bn. Health and safety efforts allowed OC to successfully navigate covid-19 challenges as well as reaching targets that include Egypt’s mega water projects and commercial projects in the US, and securing new awards, said CEO Osama Bishai. Revenue increase came from projects operating on a “full-fledged basis” despite health and safety challenges. OC also saw positive cashflow, reflecting healthy operations, he added.

OC’s consolidated backlog excluding Besix inched slightly by 0.1% y-o-y to USD 5.4 bn as of the end of FY2020. Consolidated new awards rose 16% y-o-y to USD 920 mn during the year. Including the group’s 50% share in Besix, pro forma backlog as of the end of September rose 1.2% y-o-y to USD 8 bn.

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