Egypt’s corporate news: March 26, 2001
Orascom Construction Industries –OCI (OCIC.CA) along with two other partners have submitted the lowest bid for the Nagaa Hamadi barrage civil works. The total cost of the project is EURO300 million. The decision to assign the electromechanical works for the project will occur at the end of April 2001. The project is financed by both the Egyptian and German governments and the European Investment Bank.
Egyptian International Pharmaceutical Industries Company -EIPICO (PHAR.CA) posted FY2000 results ending December, in which NAI edged up 5 percent to LE87.4 million compared to LE83.2 million in FY99.Revenues increased 3.2 percent from LE388.7 million to LE376.5 million in FY99.In addition, SG&A increased 16.5 percent to LE11.4 million compared to LE9.8 million in FY99. PHAR will hold its ordinary general assembly on April 10 to approve FY2000 financial statements and the distribution of profits. The suggested dividend is LE0.99/share.
Lakah Group (HCFI.CA) posted FY2000 results ending December, in which it incurred a net loss of LE299.1 million compared to LE172.1 million in FY99. The decline in profits was attributed to various factors. Net sales fell 61.9 percent to LE467.7 million compared to LE1.2 billion in FY99. Provisions for damaged and idle inventory recorded LE31 million, whereas doubtful account receivables reached LE189 million. It is worth nothing that 1H FY2000 recorded a net loss of
LE418 million. However, the main reason for the better performance was that depreciation and amortization went down from LE221 million in 1H FY2000 to LE49.4 million in FY2000 The company will hold its ordinary general assembly on April 9 to approve FY2000 financial statements.
Oriental Weavers (ORWE.CA)held its ordinary general assembly yesterday, which approved the distribution of a cash dividend of LE3.00/share.
International Electronics –BAHGAT (INEC.CA) released FY2000 results ending December, in which the company incurred a net loss of LE49.3 million compared to NPAT of LE64 million in FY99. Despite the remarkable increase in revenues which jumped 52.2 percent to LE427.6 million versus LE323 million in FY99, COGS/Revenue significantly inflated to 80.7 percent versus 62 percent in FY99 which eliminated the positive effect of increasing revenues on gross profit as it slipped 32.6 percent to LE82.6 million versus LE122.7 million in FY99. The main reasons behind such increases in COGS were the devaluation of the Egyptian pound against the dollar, representing INEC’s main import currency for most of its products’ components.
In addition, stable selling prices due to the prevailing recession prevented the company from offsetting the impact of in-creasing costs. SG&A increased 61.5 percent to 59.3 million compared to LE36.7 million, as the company adopted intensive marketing campaigns. Provisions jumped from none to LE5 million. Interest expense increased 2.5x to LE48.9 million versus LE19.6 million as short-term debt doubled to LE556 million. FX losses recorded LE23.9 million
Pfizer Egypt (PFIZ.CA) announced that it will distribute a cash dividend (coupon #22) of LE0.75/share starting March 27.
Prime Securities S.A.E.
© 2001 Mena Report (www.menareport.com)