Results as at
30 September 2009 Cairo, Egypt/November 23, 2009, 10:15 AM
OCI announces Third Quarter Results
Fertilizer prices firm up & construction backlog replenishes
Summary of Consolidated Results for Q3 2009:
* Consolidated revenue decreased 14.4% to USUSD 933.4 million
(EGP 5,194.7 million) versus USUSD 1.091.0 million
(EGP 6,132.4 million) in Q2 2009
* EBITDA increased by 8.8% to USUSD 203.5 million (EGP 1,133.3 million)
versus USUSD 187.0 million (EGP 1,053.9 million) in Q2 2009
* Consolidated EBITDA margin of 21.8% and Construction
Group EBITDA margin of 16.1% for Q3 2009
* Net income increased by 17.9% to USUSD 120.7 million
(EGP 672.3 million) versus USUSD 102.4 million (EGP 567.1 million)
in Q2 2009
* Infrastructure work constitutes 59.5% of the Construction Group
backlog as at 9M 2009 versus 39.8% during the same period last
year
Summary of Consolidated Results for 9M 2009 Ended 30 September 2009:
* Consolidated revenue grew 5.1% to USUSD 2,852.0 million
(EGP 15,942.9 million) versus USUSD 2,713.3 million
(EGP 14,723.6 million) in 9M 2008
* EBITDA decreased by 22.8% to USUSD 566.6 million
(EGP 3,163.2 million) versus USUSD 733.9 million
(EGP 3,982.0 million) in 9M 2008
* Consolidated EBITDA margin of 19.9% and Construction Group margin
of 14.8% for 9M 2009
* Net income from continued operations decreased by 49.3% to
USUSD 328.7 million (EGP 1,835.3 million) versus USUSD 647.9 million
(EGP 3,515.8 million) in 9M 2008
Consolidated Construction Group Backlog
* Consolidated backlog remained flat USUSD 7.21 billion compared to Q2
2009 and reflected a growth of 4.0% over the backlog as at 31
December 2008 and 5.4% decline over the same period last year
* New awards during the third quarter totaled USUSD 0.71 billion of
which 60% was infrastructure work
Statement from the Chief Executive Officer - Nassef Sawiris
Third Quarter Results
We are pleased with our operational performance during the third
quarter. Our quarter revenue decreased 14.4% over the previous quarter
from USUSD 1,091.0 million to USUSD 933.4 million on the back of normal
construction billing volatility, EBITDA grew 8.8% from USUSD 187.0
million to USUSD 203.5 million and Net Income grew 17.9 % from
USUSD 102.4 million to USUSD 120.7 million. Overall margins remain strong
for both operating groups.
During the quarter, OCI paid out an interim cash dividend of USUSD 0.80
per share or approximately USUSD 166 million to its shareholders. We
intend to continue our bi-annual dividend policy during 2010.
Construction Group
The Construction Group reported revenue growth of 6.2% during
the third quarter compared to the same period last year and witnessed
a 16.2% decline over Q2 2009 attributable to a lower number of working
days and the month of Ramadan. The Group achieved an EBITDA margin
of 16.1% during Q3 2009 reflecting an improved cost structure. The
Group announced approximately USUSD 0.71 billion of new work during the
quarter effectively replenishing the backlog which brings the value of
total new awards to USUSD 2.81 billion for the nine months ended 30
September 2009. Our consolidated construction backlog at the close of
the quarter was USUSD 7.21 billion, reflecting a growth of 4.0% over the
backlog as at 31 December 2008 and flat from the previous quarter.
Changes in currency exchange rates had a net neutral effect on the
Construction backlog.
The Construction Group continues to benefit from the infrastructure
spending programs in its key regional markets and the backlog remains
heavy on infrastructure constituting approximately 60%. The Group has
also witnessed improved activity in the private sector with several
contracts awarded from key blue chip relationship clients. The
infrastructure theme continues to dominate the region's spending with
Egypt announcing a new stimulus program valued at USUSD 24 billion of
which USUSD 15 billion will be dedicated to financing infrastructure.
During the quarter, the Construction Group continued its preparations
to ramp up presence in several new strategic markets across the region
which shall result in further de-concentration of any single market. As
at 30 September, the highest share of any single market in the backlog
was Egypt with a 25% share.
Fertilizer Group
During the quarter, Egyptian Fertilizer Company (EFC), our 1.3 mtpa
urea facility, sold over 350 thousand during Q3 at an average price of
USUSD 250. EBIC has sold over 134 thousand tons of ammonia
during Q3 at an average price of USUSD 218. The plant continued at a
stable production run rate, operating at 105% of its name-plate
capacity.
During the first nine months, the Fertilizer Group exported USUSD
50 million worth of fertilizers into Brazil through its supply
agreement with FITCO/Fertipar. The agreement announced during Q1 2009
for the supply and import of fertilizers into the Brazilian market has
proven very successful. On the back of this success, the Fertilizer
Group has setup a 50/50 joint venture with FITCO/Fertipar to co-invest
and participate in the distribution of fertilizers in the domestic
market. This newly established company will be able to jointly consider
new potential opportunities in the future. The agreement with FITCO/
Fertipar is part of the Group's strategy to establish long-term
partnerships with key distributors in strategic import markets.
Sorfert Algeria was 80% complete as at 30 September 2009. The
Fertilizer Group has finalized its capital expenditure for a new Urea
Ammonium Nitrate (UAN) production line with a production capacity of
350 thousand tons. The EFC upgrade is also underway; both to be
completed during 2011.
For additional information
contact: For additional information on OCI:
OCI Investor Relations Department: www.orascomci.com
Omar Darwazah OCI stock symbols: OCIC.CA / ORCI
EY / OCICqL / ORSD
Email: omar.darwazah@orascomci.com
Orascom Construction Industries
Erika Wakid (OCI)
Email: erika.wakid@orascomci.com Nile City Towers - South Tower
2005A Corniche El Nil
Hassan Badrawi Cairo, Egypt
Director
Tel: +202 2461 1036/0727/0917
Fax: +202 2461 9409
This information is provided by RNS
The company news service from the London Stock Exchange
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