Q1 revenue up 10% at Egypt's Orascom as Besix orders hit $5.2bn
Nasdaq Dubai-listed contracting giant Orascom, 50% owner of Belgium's Besix, sees Mena growth despite US decline in Q1 2019
A 10% increase in Middle East and North Africa (Mena) revenues at Egypt-headquartered Orascom Construction in Q1 2019 helped to redress a 38% drop in its year-on-year revenues from America, according to a Nasdaq Dubai statement by the Osama Bishai-led contracting heavyweight that also owns 50% of Belgian construction giant Besix.
In a missive issued to Dubai bourse, where it is listed, Orascom said its consolidated revenues for the three months ending 31 March, 2019 stood at $705.6m – a 6.8% drop on Q1 2018's corresponding figure of $756.8m, generates from the Mena and US regions.
Mena made up 76% of total revenue in 2019's opening quarter, with the region generating $287.4m during Q1, a 10.3% increase on 2018’s corresponding figure.
US revenues, however, were not as positive, valued at $168.2m during Q1 2019, a 38% decline on 2018's corresponding figures of $269.4m.
“The decrease in revenue in the US compared to the previous year is mainly attributable to the completion of the large methanol plant in Texas,” Orascom said.
Standalone backlog at Belgium's Besix – of which Orascom owns 50% – increased 41.2% year-on-year to $5.2bn as of 31 March, 2019, while its new awards totalled $739m in Q1 2019.
Orascom said it signed $335m of new awards in Egypt during Q1 2019, adding it had expanded its “presence in the marine sector following recent success stories of key projects in this segment”.
The period also saw Orascom add work in the Egypt’s 700km² New Administrative Capital, and in “the country’s road development initiatives”.
Located approximately 45km east of Cairo, the Administrative Capital is a three-phase megaproject that the government has previously claimed will be among the smartest cities in the world upon completion.