Orascom records $5.4bn backlog, as net income hits $25m in Q1 2020

Q1 2020 revenue increased 17.3% to $827.6m, while EBITDA decreased 8.8% to $64.1m, and new awards topped $335m

Net cash position as of 31 March 2020 was $114.3m at Orascom Construction [representational image]
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Net cash position as of 31 March 2020 was $114.3m at Orascom Construction [representational image]

Egyptian Securities Exchange and Nasdaq Dubai-listed contracting giant Orascom Construction has recorded $25m in net income in Q1 2020, with the backlog at the contractor having topped 24.1% year-on-year to $5.4bn in the same period.

Q1 2020 revenue increased 17.3% y-o-y to $827.6m, while earnings before interest, tax, depreciation, and amortisation (EBITDA) decreased 8.8% y-o-y to $64.1m.

Net cash position as of 31 March 2020 was $114.3m. Pro-forma backlog including 50% share in BESIX increased 13.3% y-o-y to $7.9bn in the same period.

Orascom, which is working on the Cairo Metro Line 3 alongside Arab Contractors, recorded a 24.7% y-o-y spike in consolidated new awards to $599.2m.

Pro-forma new awards including 50% share in BESIX increased 10.5% y-o-y to $946.9m in Q1 2020.

Speaking about the financial performance in Q1 2020, CEO of Orascom Construction, Osama Bishai, said: “Our Q1 2020 results build on the operational and financial health of the group displayed in FY 2019 and strengthen our position as we face a more challenging environment impacted by COVID-19.

“Our resilient backlog and net cash levels are also two key items that provide us with additional support during this period.”

Bishai added: “We have further reinforced our focus on important elements of our business such as project execution and controls, cash preservation and collection, and cost optimisation.

“In addition, our past repeated experiences of managing and succeeding during uncertainty has helped prepare us to address the current environment.

“We continue to be vigilant, and are confident in the long-term fundamentals of our markets and the importance of current and future projects to infrastructure, industrial and commercial development,” Bishai continued.

In the Middle East, the contractor signed approximately $335m worth of new awards in Q1 2020.

Additionally, the first quarter of 2020 also saw Orascom Construction expand its presence across a number of its existing core sectors such as infrastructure, wastewater treatment, railway, roads, and data centers.

The company was awarded the modification, renewal, installation, and maintenance of the Banha-Port Said railway lines in Egypt covering trackwork and signaling across 45km.

Orascom is part of a consortium that was picked to build the first Independent Sewage Treatment Plant (ISTP) concession in Saudi Arabia.

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