{"id":53135,"date":"2017-04-28T01:40:09","date_gmt":"2017-04-27T18:40:09","guid":{"rendered":"http:\/\/www.siamlandbank.com\/propertynews\/?p=53135"},"modified":"2017-04-27T23:50:20","modified_gmt":"2017-04-27T16:50:20","slug":"orascom-returns-to-profit-but-equity-weakens-due-to-currency-shifts","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/orascom-returns-to-profit-but-equity-weakens-due-to-currency-shifts\/","title":{"rendered":"Orascom returns to profit but equity weakens due to currency shifts"},"content":{"rendered":"


\nA firmer grip on costs helped Orascom Construction move back into the black in 2016, with the company declaring a net profit of US$48.7 million last year, compared with a loss of $347.8m a year earlier. However, its balance sheet still took a hit from currency movements following the devaluation of the Egyptian pound, meaning that it suffered a total comprehensive loss (after currency movements) of $214.4m. This led to a 46 per cent decline in the company’s net equity position to $302.4m.
\nEgypt-headquartered Orascom Construction, whose shares are listed on Nasdaq Dubai, grew revenue by almost 4 per cent during the year, and its chief executive, Osama Bishai, said that its Middle East and North Africa division “built on its robust performance” achieved in the previous year, but its bottom line was hit by the poor performance of its US division.That was because of delays to the Iowa Fertilizer project – a large, new $2bn fertilizer factory built for its former parent company, OCI, which finally began production last week.
\nA summary income statement prepared for shareholders found that its US operations lost $246.5m, although this was a 53 per cent reduction on the $523.2m lost in the same period a year earlier. Its Mena operation, meanwhile, grew its net income by more than 31 per cent to $231m. The company generated 53 per cent of revenue from the region last year, with the bulk (47 per cent of total revenue) earned in Egypt.
\n“Operationally in Egypt, we continue to make excellent progress on our large infrastructure projects and have already surpassed the execution record we set last year for the fast-track execution of power projects,” Mr Bishai said. The company’s backlog of projects dropped by 21 per cent over the course of the year to $5.26bn by year-end, although it said that 15 per cent of this decline was due to the change in value, in US dollar terms, of projects denominated in Egyptian pounds. The amount of new awards won by the company dropped by 23 per cent year-on-year to $3.75bn.
\nAbout 62.6 per cent of its backlog is for Middle East-related work, and 53 per cent of this total, is in Egypt.However, the company also said that it has benefited from the “resilient” performance of contractor Besix – in which it has a 50 per cent stake.”Not only did it record its strongest-ever set of net results but it has also secured new committed work both in the Middle East and Europe in 2017,” Mr Bishai said.
\nRecent contracts won by Besix include a joint venture with Orascom for the deep infrastructure works for Dubai’s Expo 2020 site and a contract secured last year to build a new wastewater treatment plant in Jebel Ali.A study published last week by BMI Research indicated that Egypt’s domestic contractors may face greater competition in the coming years, as its “challenging macroeconomic environment” will lead its cash-strapped government to rely much more heavily on foreign investment to fund infrastructure.
\n“Mirroring growing bilateral ties, we expect countries like China and Russia in particular to emerge as key financiers of Egyptian infrastructure assets and, subsequently, for Chinese and Russian construction companies to thereby increase their market share,” it said.mfahy@thenational.aeFollow The National’s Business section on Twitter
\n
\nSource : thenational.ae
\nRead more…Orascom returns to profit but equity weakens due to currency shifts<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

A firmer grip on costs helped Orascom Construction move back into the black in 2016,...<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[1],"tags":[],"class_list":["post-53135","post","type-post","status-publish","format-standard","hentry","category-property-news"],"jetpack_featured_media_url":"","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75ss1-dP1","jetpack-related-posts":[{"id":14694,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/orascom-moves-back-in-black-as-contract-wins-boost-backlog\/","url_meta":{"origin":53135,"position":0},"title":"Orascom moves back in black as contract wins boost backlog","date":"May 28, 2016","format":false,"excerpt":"\r Orascom Construction is targeting opportunities in the power, transport and water sectors in its home market of Egypt as profits jumped in the first quarter.The company reported a net profit of US$23 million for the first three months of the year, which is nearly four times higher than the\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":55741,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/orascom-first-quarter-profit-rises-on-us-business-boost\/","url_meta":{"origin":53135,"position":1},"title":"Orascom first-quarter profit rises on US business boost","date":"May 24, 2017","format":false,"excerpt":"\r Orascom Construction announced a 22 per cent year-on-year increase in net profit for the first three months of 2017 to US$28 million (Dh102.8m) on the back of higher sales and an improved contribution from Besix and its US business. The Nasdaq Dubai-listed company said sales grew by 10 per\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":55745,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/builder-orascom-first-quarter-profit-rises-on-us-business-boost\/","url_meta":{"origin":53135,"position":2},"title":"Builder Orascom first-quarter profit rises on US business boost","date":"May 24, 2017","format":false,"excerpt":"\r Orascom Construction announced a 22 per cent year-on-year increase in net profit for the first three months of 2017 to US$28 million (Dh102.8m) on the back of higher sales and an improved contribution from \u00adBesix and its US business. The Nasdaq Dubai-listed company said sales grew by 10 per\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":35322,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/profits-at-beisix-help-to-shore-up-orascoms-third-quarter-results\/","url_meta":{"origin":53135,"position":3},"title":"Profits at Beisix help to shore up Orascom's third-quarter results","date":"November 22, 2016","format":false,"excerpt":"\r Orascom Construction reported a 6.1 per cent increase in third-quarter profits attributable to shareholders to US$26 million, which was due mainly to an improved performance by contractor Besix \u2014 in which it has a 50 per cent share.The Egyptian-headquartered company, whose shares are listed on Nasdaq Dubai, reported a\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":35332,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/profits-at-besix-help-to-shore-up-orascoms-third-quarter-results\/","url_meta":{"origin":53135,"position":4},"title":"Profits at Besix help to shore up Orascom's third-quarter results","date":"November 22, 2016","format":false,"excerpt":"\r Orascom Construction reported a 6.1 per cent increase in third-quarter profits attributable to shareholders to US$26 million, which was due mainly to an improved performance by contractor Besix \u2014 in which it has a 50 per cent share.The Egyptian-headquartered company, whose shares are listed on Nasdaq Dubai, reported a\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":23849,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/orascom-second-quarter-profit-slides\/","url_meta":{"origin":53135,"position":5},"title":"Orascom second-quarter profit slides","date":"August 24, 2016","format":false,"excerpt":"\r Orascom Construction reported a 22 per cent year-on-year decline in second-quarter pro\u00adfit amid a tough Saudi market, the Egypt-based contractor said on Wednesday.Net profit plunged to US$26.4 million from $34m a year earlier, the company said.Revenue remained largely flat at just over $1 billion. Orascom, whose shares are listed\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/53135"}],"collection":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/comments?post=53135"}],"version-history":[{"count":0,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/53135\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/media?parent=53135"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/categories?post=53135"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/tags?post=53135"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}