Egypt’s Orascom Construction Industries (OCI) announced consolidated revenue of 575.6 million Egyptian pounds ($125.13 million) with a gross profit of EP162.5 million, that is 28.2 percent of revenue, earnings before interest, tax, depreciation and amortization (EBITDA) of EP173.7 million—30.2 percent of revenue—and net income of EP76.1 million, which is 13.2 percent of revenue, for the first quarter ending March 31, 2002.
Last year, OCI had consolidated revenue for the first quarter of EP520.8 million with a gross profit of EP179.3 million (34.4 percent), EBITDA of Ep187.3 million (36 percent), and net income of EP74.0 million (14.2 percent).
OCI Chief Executive Officer Nassef Sawiris commented that OCI delivered solid results in a challenging market environment. “Our financial results continue to demonstrate sustainable growth and we expect 2002 to be a busy year with solid overall performance,” he added.
Sawiris also noted that OCI’s secured EP760 million of new work during the quarter, of which 85 percent is outside of Egypt, “affirming the group’s commitment to expand its construction activities regionally.”
Among the new projects secured was the $71 million Cornell Medical College contract in Qatar awarded to Contrack International and its local partner. OCI is also expecting to sign several large contracts during the coming months including the Nagga Hammadi hydropower plant project, according to a company press release.
Regarding OCI’s Building Materials Group, which focuses on cement manufacturing, following the smooth launch of its fourth production line, Egyptian Cement Company is now among the world’s lowest cost producers of cement. The company maintained an EBITDA margin of 58 percent in 1Q02 with EBITDA growth of 23 percent over last year.
Also during the quarter, Algerian Cement Company awarded F.L.Smidth and OCI a contract to construct its new greenfield plant capable of producing 2 million tons per year. Upon completion, Algerian Cement Company will contribute significantly to our bottom line and make OCI a regional force in the cement industry. — (menareport.com)
© 2002 Mena Report (www.menareport.com)
