SOURCE: Orascom Construction Industries

November 27, 2007 02:01 ET

Orascom Construction Industries Announces 3rd Quarter Results

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 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 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. ----------------------------------------------------------------

For additional information CONTACT:

Investor Relations Department:

Hassan H. Badrawi Email:

Omar Darwazah Email:

Ahmed Sultan Email:

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:

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

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