Cairo--(Marketwire - November 27, 2007) - NEWS RELEASE
Cairo, Egypt - 26 November 2007
OCI Announces Record 9M/Q3 2007 Results
Summary of Results for the 9M Ended 30 September 2007:
- Consolidated revenue grew 29% to US$ 2,685.9 million (LE 15,295.8
million) versus US$ 2,075.7 million (LE 11,940.3 million) in 9M 2006
- EBITDA rose 33% to US$ 773.8 million (LE 4,406.3 million) versus US$
579.7 million (LE 3,334.5 million) in 9M 2006
- Net income increased 40% to US$ 491.8 million (LE 2,800.5 million)
versus US$ 350.3 million (LE 2,015.3 million) in 9M 2006
- Consolidated EBITDA margin of 28.8% and operating margin of 18.3%
- Annualized return on equity of 41%
Summary of Results for the 3M Ended 30 September 2007:
- Consolidated revenue grew 11% to US$ 954.7 million (LE 5,436.7
million) versus US$ 860.8 million (LE 4,951.8 million) in Q3 2006
- EBITDA rose 12% to US$ 258.8 million (LE 1,473.8 million) versus US$
231.9 million (LE 1,334 million) in Q3 2006
- Net income increased 32% to US$ 184.7 million (LE 1,051.8 million)
versus US$ 140.3 million (LE 807.1 million) in Q3 2006
- Consolidated EBITDA margin of 27.1% and operating margin of 19.3%
Cement
- Cement Group revenue grew 72% during 9M 2007
- Cement Group EBITDA grew 52% during 9M 2007
- Cement Group sold 14.3 million tonnes during 9M 2007, up 39%
- Main contributions from Algerian, Egyptian, northern Iraqi and
Spanish operations
- Ready-mix concrete sales were 6.5x volume sold the same nine-month
period last year
Construction
- Construction revenue grew 18% and EBITDA grew 38% during 9M 2007
- Backlog as at 30 September 2007 stood at US$ 3.5 billion (LE 19.4
billion), compared to US$ 2.2 billion as at 31 December 2006
- Construction Group recorded US$ 1.7 billion in new contract awards
during the third quarter of 2007, a 66% increase over the same period
last year and 31% higher than the previous quarter
Statement from the Chief Executive Officer - Nassef Sawiris
Orascom Construction Industries (OCI) continued to generate record results.
During the nine-month period ended 30 September 2007, consolidated revenue grew
29%, EBITDA rose 33% and net income increased 40% in dollar terms compared to
the same period last year.
Our Cement Group has steadily achieved critical milestones across its various
ongoing greenfield cement projects. To-date, the white cement plant in Algeria
has begun its production operations and our third grey cement production line in
Algeria has started its early cement production and sales. Our new grey line in
Northern Iraq is scheduled to begin operations in December. Emirates Cement is
successfully operating its early cement program and has successfully fired its
kiln last week, with 8% daily market share already achieved. Our team has been
focused on the timely execution of these new plants which raise our annual
cement production capacity to 32 million tonnes. We have also finalized
important equipment supply contracts for the rehabilitation and upgrade of
Sangwon Cement and with Polysius fir our greenfield plant in South Africa. We
believe we have excellent visibility across emerging markets where we operate
driven by strong local demand and shall continue to pursue new acquisitions and
greenfield investments.
Our Construction Group reported a backlog of US$ 3.5 billion driven by record
new awards during the third quarter of US$ 1.7 billion (only 50% of BESIX
construction awards included), 116% higher than the average of the value of new
awards achieved during the preceding six quarters. The group has continued to
successfully and selectively pursue sizeable construction contracts in the
infrastructure and industrial sectors which benefit from higher profitability
margins. During the nine months ended 30 September, the Construction Group
achieved a record blended EBITDA margin of 17%. The Construction Group continues
to demonstrate its leadership in key sectors such as power generation,
emphasized by the award of two strategic power plant contracts in Egypt to-date,
with a third contract for the new Sidi Kereir power plant valued at US$ 102
million being finalized. Just last week, an Alstom/OCI consortium was also
announced as the lowest bidder on a US$ 2 billion power project in Algeria. It
is clear that infrastructure spending and investments in the Middle East and
North Africa regions have begun to reflect the windfall of US$ 60+ average oil
price during the last two years notwithstanding 2007 price increases. We expect
further growth in infrastructure spending during the next several years on the
back of even higher oil prices.
OCI continues to actively manage its interests in infrastructure investments. We
have increased our stake to 100% in National Steel Fabrication Company, the
region's largest provider of steel fabrication services. We have signed an
agreement to divest a 50% stake in Egyptian Container Handling Company for a
consideration of US$ 372 million. We have expanded our investments in natural
gas industries with the acquisition of a 20% strategic stake in Egyptian
Fertilizer Company (EFC) for a total consideration of US$ 150 million. EFC has
an annual production capacity of 1.3 million tonnes of urea fertilizer. This
investment compliments our strategic stake in the greenfield ammonia start-up in
Egypt and our joint venture investment with the Algerian state-owned oil & gas
company Sonatrach in a greenfield ammonia / urea complex in Algeria.
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For additional information CONTACT:
Investor Relations Department:
Hassan H. Badrawi
Email:
hassan.badrawi@orascomci.com
Omar Darwazah
Email:
omar.darwazah@orascomci.com
Ahmed Sultan
Email:
ahmed.sultan@orascomci.com
Tel: +202 2461 1039/1036/0727/0914
Fax: +202 2461 9409
Orascom Construction Industries
Orascom Construction Industries (OCI) is a leading cement producer and
construction contractor active in emerging markets. Based in Cairo, we employ
more than 40,000 people in over 20 countries.
As a cement producer, we own and operate cement plants in Egypt, Algeria, United
Arab Emirates, Turkey, Pakistan, northern Iraq and Spain, which have a combined
annual production capacity approaching 32 million tonnes. Our new investments in
northern Iraq, Nigeria, Algeria, Saudi Arabia, Syria, DPRK and South Africa will
increase our annual production capacity to 44 million tonnes positioning us
among the world's top ten cement producers.
As a contractor, we provide engineering, procurement and construction services
on large industrial, commercial and infrastructure projects for private and
public customers principally in Europe, the Middle East and North Africa. We
also have investments in natural gas industries, such as fertilizer producers,
and infrastructure concessions.
For additional information on OCI:
www.orascomci.com
Orascom Construction Industries (OCI)
Nile City Towers - South Tower
2005A Corniche El Nil, Cairo, Egypt
Tel: +202 2461 1111, Fax: +202 2461 9400,
OCI stock symbols: OCIC.CA / ORCI EY / OCICqL / ORSD LI
This information is provided by RNS
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