Sunday, August 27, 2017

Orascom Construction H1 revenue tops $2bn

Orascom Construction has reported a consolidated first half 2017 revenue of $2.012 billion in line with the previous year. Consolidated net income attributable to shareholders increased 4.7 per cent year on year to $51.7 million in H1 2017 and decreased 10.2 per cent y-o-y to $23.7 million in Q2, 2017.

The Mena region accounted for 54 per cent of total revenue, of which Egypt represented 91 per cent, while Weitz and Contrack Watts comprised 28 per cent of total. Net income in H1 2017 in Mena reflects the improved performance in the second quarter while net income in the US was impacted by the realisation of a deferred tax asset of $20 million, the company said.

Consolidated EBITDA increased 12.1 per cent year on year to $111.1 million in H1 2017 and 7.4 per cent y-o-y to $54 million in Q2 2017.

EBITDA margin improved to 5.5 per cent and 5.7 per cent in H1 and Q2 2017, respectively. Particularly, EBITDA margin in Mena rebounded in Q2 2017 to 9.9 per cent from 9.2 per cent in Q2 2016 and 6.2 per cent in Q1 2017.

Net income contribution from Besix increased to $13.5 million in Q2 2017, bringing total contribution in H1 2017 to $24 million compared to $9.5 million the previous year.

The group’s net cash position stood at $202.1 million as of June 30, 2017, compared to $204.1 million as of December 31, 2016 and $186.8 million as of March 31, 2017. Total equity increased 26.2 per cent to $381.6 million compared to the level at December 31.

Consolidated backlog excluding Besix stood at $4.7 billion and new awards at $747.3 million as of June 30, 2017. The froup expects to sign a number of important projects during the second half of 2017 across Mena and US markets, while the current backlog provides sufficient visibility on profitability, it said.

Backlog as of June 30, 2017 was impacted by approximately 20 per cent due to the devaluation of the Egyptian pound. Infrastructure and industrial work continue to account for the majority of the consolidated backlog, representing 86 per cent of total.

Including the group’s 50 per cent share in Besix, pro-forma backlog and new awards stood at $6.6 billion and $1.5 billion, respectively, as of June 30, 2017, the company said.

"We continued to expand our presence in Egypt’s infrastructure sector during the second quarter and signed additional projects in power and roads as well as works associated with the new administrative capital. Our significant involvement in all major segments of Egypt’s construction market further strengthens our position in key areas of focus such as transportation and water treatment, said Orascom Construction CEO Osama Bishai.

"In the US, we remain focused on executing our current projects while evaluating new opportunities. We are also pleased to report that Weitz has successfully completed ahead of schedule the largest student-housing complex in the US at Texas A&M University, solidifying its leadership in this
growing sector of the construction market. Furthermore, we continue execute our plan to streamline our US subsidiaries to improve our overall cost structure as we aim to grow this part of our business and increase profitability." - TradeArabia News Service

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