Orascom Construction’s net profits increased by 17.3% during the first nine months of 2016, to record $75.4m compared to $64.3m year-on-year (y-o-y), according to a press release on Tuesday.
The company’s total revenues reached nearly $2.959m, with the earnings before interest, taxes, depreciation, and amortisation (EBITDA) registered $139.3m during the first nine months of 2016, whereas revenues reached $962.1m in the third quarter (Q3) of 2016. The company’s backlog stands at $7.5bn in nine months, an increase of 56.5% y-o-y, according to the press release.
The press release added that Orascom’s 50% stake in BESIX Group contributed €1.8bn as of September, increasing to $25m. This registered $15.5m in Q3, bringing the company’s backlog to €3.3bn.
“Our third quarter results emphasise our strong performance in Egypt and our ability to maintain our backlog level,” said CEO Osama Bishai.
He added that the company is executing a large number of strategic projects across several sectors that include transportation and power, in addition to pursuing new pipeline projects, depending greatly on Egypt’s large infrastructure work which is progressing in a stable manner.
Under a section named “What to watch out for in Q4 of 2016” in a report issued on Wednesday by Beltone Financial, it said that a softer revenues figure is expected for Orascom in the fourth quarter (Q4) of 2016. “We expect a windfall on the margins and bottom line. However, the balance sheet exposure should be negative, as management highlighted a substantial foreign exchange loss on the equity reflecting net investment value of the Egyptian operations,” the report said.
Orascom Construction Limited is a global engineering and construction contractor primarily focused on infrastructure, industrial, and high-end commercial projects in the Middle East and North Africa, in addition to the United States and the Pacific Rim. Orascom has consistently ranked among the world’s top contractors.