Egypt contractor Orascom reveals $985m new contract wins in 9M 2018
Orascom's updated portfolio includes work in Egypt's New Administrative Capital and Al Alamein
Egypt’s Orascom Construction signed approximately $985m of new awards in the Middle East and Northern Africa (Mena) during the first nine months of 2018, $300m of which were added in the third quarter of the year.
In its nine month (9M) results released on 27 November, the group said it has capitalised on its “strong positioning in the water sector and added new water-related projects in the New Administrative Capital and Al Alamein".
Meanwhile, in other markets, the expansion of Fujairah International Airport in the UAE is under way, with the group continuing to target specific projects and sectors across Mena.
With this in mind, total revenue from Mena rose 8.4% on last year, with this business segment bringing in $1.46bn during the first nine months of 2018.
Besix Group, 50% owned by Orascom, also reported a standalone backlog of $3.6bn (EUR3.2bn) as of 30 September 2018, in-line with the level achieved the previous year. Despite a decrease in new awards in Q3 2018, total new awards in 9M 2018 increased 7.8% year-on-year to $2.2bn (EUR1.9bn).
The results come just weeks after Orascom added $520m of new awards to its backlog between July and September 2018 – the majority of which came from Egypt, where the firm is based.
According to its H1 2018 financials released two months ago, profits at Orascom increased by 59.6% to $82.5m following a hike in new contract wins. At the time, Orascom revealed it had signed approximately $680m worth of new awards in the Middle East during this period.
July this year saw it enter a consortium agreement with Japan's Toyota Tsusho Corporation and French electricity heavyweight Engie to develop a 500MW wind farm in Ras Ghareb, northern Egypt, under a build-own-operate model.