H1 2020 backlog at BESIX spikes $5.4bn, despite net loss of $18.5m

The company said that the results were impacted by additional charges on certain projects in the UAE and The Netherlands

BESIX is building the Grand Egyptian Museum alongside Orascom Construction.
CW archives/ Supplied
BESIX is building the Grand Egyptian Museum alongside Orascom Construction.

Brussels-based construction mammoth BESIX, 50% of which is owned by Egyptian Stock Exchange- and Nasdaq Dubai-listed Orascom Construction has reported a standalone backlog of $5.4bn in H1 2020, and solid liquidity position, while it posted a net loss of $18.5m in H1 2020.

Orascom Construction revealed in a stock market filing that BESIX results were impacted by additional charges on certain projects in the UAE and The Netherlands during H1 2020.

The statement added: “However, BESIX maintains a healthy backlog of $5.4bn and a solid liquidity position.”

BESIX posted new contract awards of $556.4 in Q2 2020. According to the company, majority of the contract award were secured for projects in Europe, bringing total new awards in H1 2020 to $1.3bn. Meanwhile, net loss in Q2 2020 was $7.1m.

Commenting on BESIX’s financial performance, CEO of Orascom Construction Osama Bishai, said: “BESIX preserved its backlog at EUR 4.5 billion as of 30 June 2020 and distributed a dividend to Orascom Construction of $11.8m for our 50% share.

“On the other hand, BESIX is facing some challenges on the same projects encountered the previous quarter. However, BESIX Management is exerting major effort and focus to tackle this and return to profitability in H2 2020,” added Bishai.

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