Backlog at Orascom hits $5.4bn in H1 2020, net income drops 43.4%
New contract awards decreased by 6.4% y-o-y to $1.3bn, while revenue increased by 8.2% y-o-y to $1.6bn
Nasdaq Dubai- and Egypt bourse-listed Orascom Construction recorded 17.7% surge in its consolidated backlog $5.4bn in H1 2020, but the construction heavyweight posted a 43.4% plunge in net income to $34.8m in the same period.
Meanwhile, new awards decreased by 6.4% y-o-y to $1.3bn at the contractor in the first six months of 2020, while revenue increased by 8.2% y-o-y to $1.6bn, and consolidated EBITDA dropped by 30.3% y-o-y to $99.3 in the same period.
The company’s net cash position stood at $309.4m as of 30 June, 2020, and positive operating cash flow was $53.2m in H1 2020.
Commenting on the company’s financial position, CEO of Orascom, Osama Bishai, said: “The Group demonstrated resilience in Q2 2020 as we delivered encouraging performance in a challenging environment impacted by COVID-19.
“We had indicated earlier this year that maintaining our project pipeline and backlog would be one of our key challenges. That said, we succeeded to sustain our consolidated backlog at $5.4bn, in-line with the previous quarter and reflecting an increase y-o-y despite solid project execution.”
“Revenues during the second quarter were flat y-o-y, indicating a healthy rate of execution across our projects in spite of operational challenges related to the current environment. While we saw some pressure on gross margins in Q2 2020, particularly more pronounced in May during a nationwide slowdown in Egypt, we maintain our focus on important elements of our business such as project controls, cost optimization and cash flow,” Bishai added.