Orascom Construction (OC) reported an 8% y-o-y rise in revenues to USD 934.9 mn in 2Q 2022, with net income of USD 20.8 mn (down 13% in a high-inflation environment), according to its latest earnings release (pdf). Net income in the period was up nearly 60% over 1Q 2022, the company noted. OC’s EBITDA margin came under pressure in the Middle East and Africa at the same time as the group’s margins in the US improved substantially. The construction giant's net income eased 29% to USD 33.9 mn in the first six months of the year, while revenues were up 14% to USD 1.9 bn.

OC’s consolidated backlog rose more than 10% to USD 6.5 bn in 1H 2022, with new awards jumping 32% y-o-y to USD 2.4 bn. Egypt accounted for 69% of the company’s backlog, followed by the US (25%) and Saudi Arabia (2%). Standalone backlog at Besix, in which OC holds a 50% share, rose 15% y-o-y to reach EUR 4.9 bn by the end of 1H. OC’s pro forma backlog including its 50% share in Besix rose 7% y-o-y to record USD 9 bn.

BESIX returns to profitability: Belgium-based Besix recorded net income of USD 4.5 mn in 2Q 2022, bouncing back from losses of USD 11 mn in the first quarter of the year.

In a challenging, high-inflation environment, OC is focused on “project execution, controls, supply chain and collections,” CEO Osama Bishai said, with the result being a quarter-on-quarter improvement in profitability as well as an improving net cash position as the group generated positive operating cashflows in 2Q 2022. The company’s business development priorities include infrastructure projects and data centers.