Orascom Development Holding (ODHN AG) announced Tuesday that it had shifted to profitability in the year 2014, scoring a consolidated net profit worth CHF 36.2m ($37.01m), compared to losses worth CHF 167.5m ($171.3m) in 2013.
The reasons behind 2013’s losses were attributed mainly to the political instability in Egypt at the time, which had an effect on the group’s performance, especially in the second half of 2013, according to the company’s 2013 annual report.
In 2013, following the ouster of former president Mohamed Morsi, travel bans to the Sinai Peninsula and general travel warnings on the Red Sea area were imposed by several European countries, leading to losses for the group.
Meanwhile, the company attributed the return to profitability to a number of reasons, including strengthening revenues from the construction and real estate sectors, as well as the rise in hotel occupancies in 2014.
Furthermore, the company revealed that its unconsolidated net losses amounted to CHF 114.9m in 2014, in comparison to CHF 29.4m the year before.
In December 2014, ODHN AG, the major shareholder of Orascom Hotels and Development (OHD), announced that it would offer 10%-15% of its stocks in OHD through a private and public placement in the Egyptian stock market.
ODHN AG is registered in Switzerland’s stock market, and has a 99.68% share of OHD. The company is chaired by Samih Sawiris, a member of Egypt’s richest family. The company, through its subsidiary, provides real estate infrastructure, leisure services and hotel development.