Orascom reports 8.5% net profit growth for H1 2016
The group is executing new road projects and is collaborating with Besix on a new LNG-receiving jetty in Ain El Sokhna
Egypt-based Orascom Construction reported a net profit of $48.5m in the first six months of 2016 as compared to $44.7m last year, up by 8.5%.
The listed contractor posted revenues of $1.9bn in the first half of the year as against $1.8bn in 2015.
Net income of $49.4m was recorded in H1 2016.
On a quarterly basis, the firm reported a backlog of $7.5bn ending 30 June, 2016, led by $2.2bn in new awards during Q2 2016.
However net profit declined to $22.6m in the second quarter as compared to $35.2m in the same quarter last year.
Osama Bishai, CEO of Orascom Construction, said in the company statement: "We are pleased with the timely execution of our sizeable projects that continue to drive our financial performance this year. In parallel, we signed a number of key contracts that have propelled our backlog to a new high, providing us with significant visibility as we continue to selectively pursue new work.
"Furthermore, our current backlog reflects our position as an integral player in the development of Egypt’s infrastructure. While the power sector in Egypt led our MENA backlog growth last year, our varied skillset and strong market presence have allowed us to capitalize on increased spending across other sectors."
Orascom added a number of strategic projects during Q2 2016. The group is part of a joint venture currently building three tunnels, stretching across the Suez Canal, and cemented its involvement in the Cairo Metro program where it is also well positioned for new phases.
Furthermore, the group is executing new road projects and is collaborating with Besix on a new LNG-receiving jetty in Ain El Sokhna.
Bishai added: "The group concluded another strong quarter of new awards by signing contracts worth $2.2bn mostly in Egypt and the USA. While new awards are lower compared to the previous year, which included Burullus and New Capital power plants, the current backlog level highlights the Group’s consistent order intake over a number of quarters.
"Saudi Arabia remains a challenging market, but we continue to take prudent measures to limit our exposure there. Our focus in all MENA markets remains on quality projects where we have a competitive edge and are comfortable in the source of funding."