SOURCE: Orascom Construction Inds, S.A.E.

November 21, 2011 02:05 ET

OCI 3rd Quarter Results

CAIRO, EGYPT--(Marketwire - Nov 21, 2011) -


Results as at 30 September 2011
Cairo, Egypt /November 21, 2011, 8:30 AM


OCI Generates Double Digit Growth in EBITDA and Net Income during Q3
2011 and Reports Backlog Growth for Second Consecutive Quarter

Summary of Consolidated Results for Q3 2011:

* Consolidated revenues increased 8.9% to US$ 1,360.4 million (EGP
8,109.0 million) versus US$ 1,249.5 million (EGP 7,114.2 million) in Q3
2010

* EBITDA increased 39.6% to US$ 371.3 million (EGP 2,212.1 million)
versus US$ 265.9 million (EGP 1,514.8 million) in Q3 2010

* Consolidated EBITDA margin of 27.3% and Construction Group EBITDA
margin of 15.6% during Q3 2011

* Net income increased 24.0% to US$ 182.9 million (EGP 1,090.2
million) versus US$ 147.5 million (EGP 839.7 million) in Q3 2010

Summary of Consolidated Results for 9M 2011 Ended 30 September 2011:

* Consolidated revenues grew 14.5% to US$ 4,095.4 million (EGP24,252.4
million) versus US$ 3,576.7 million (EGP 19,977.8 million) in
9M 2010

* EBITDA increased by 38.7% to US$ 1,066.6 million (EGP 6,316.1
million) versus US$ 768.9 million (EGP 4,294.9 million) in 9M 2010

* Consolidated EBITDA margin of 26.0% and Construction Group margin
of 15.1% during 9M 2011

* Net income increased by 35.8% to US$ 554.4 million (EGP 3,281.9
million) versus US$ 408.2 million (EGP 2,280.0 million) in 9M 2010

Consolidated Construction Group Backlog

* Consolidated backlog as at 30 September 2011 grew to US$ 5.95
billion reflecting an increase of 13.6% over the backlog as at 30 June
2011

* New awards totaled US$ 1.42 billion during the quarter and US$
2.74 billion for the first nine months of the year

* Infrastructure and industrial work constitute 67.9% of the
Construction Group backlog as at 30 September 2011


Statement from the Chairman and Chief Executive Officer - Nassef
Sawiris

Third Quarter Results

OCI continues to report strong results during 2011. During the first
nine months, our consolidated EBITDA and net income grew 38.7% and
35.8% respectively over the same period last year. During the quarter,
our consolidated EBITDA and net income rose 39.6% and 24.0%
respectively over the same period last year and 2.9% and 10.7% over the
previous quarter. The net income reported during the third quarter
reflects the recent rise in tax rates in Egypt from 20% to 25%.

During the third quarter, the Fertilizer Group sold approximately 1.15
million tons of nitrogen-based fertilizers totaling 3.47 million tons
for the first nine months. The quarter witnessed robust commodities
pricing which helped lift overall profitability for the Group. Average
netbacks on urea sales witnessed the most pronounced increase with
prices increasing north of 25% quarter-on-quarter. Backed by strong
fundamentals on crops, especially on corn and wheat, nitrogen-based
fertilizer prices have been stable with a favorable outlook.

Fundamentals for nitrogen have been further supported by rising coal
prices which are a key input for urea production in China. On the
supply side, the Chinese government extended the export tariff on
nitrogen-based fertilizer products in attempt to curb exports further
and satiate local market demand. As a result, Chinese exports are down
62% during the first nine months compared to the same period last year.
We expect China to continue to export fewer nitrogen-based fertilizer
products for the next 12 months.

In October, the Fertilizer Group announced a new state-of-the-art
integrated nitrogen-based fertilizer Greenfield project in Brazil in
joint venture with Rio-de-Janeiro-based EBX Group (EBX). The EBX Group
is a leading Brazilian business group with core investments in mining,
logistics, energy, oil and gas and offshore equipment and services. The
fertilizer complex is expected to have up to 3 million tons of annual
capacity producing a diversified portfolio of nitrogen-based
fertilizers and is expected to have a total investment cost of
approximately US$ 3 billion. The complex will be located in the Acu
Superport in Brazilwhich is being developed by LLX, the logistics arm
of EBX. Once commissioned, the project will constitute a milestone in
the path of making Brazil a self-sufficient producer and consumer of
nitrogen fertilizers thereby improving reliability and availability of
strategic fertilizer supplies for the domestic farming industry.

The Fertilizer Group continues to focus on organic initiatives and
underway capacity additions in Egypt, Algeria, the Netherlands and the
US. Once these initiatives are complete by the end of the first quarter
of 2012, the Fertilizer Group would have increased total production
capacity by approximately 60%.

Sorfert Algeria is scheduled to start production within the coming 4-8
weeks and we expect to book our first shipment in February. Sorfert
will add 1.2 million tons of urea and 0.8 million tons of ammonia
annually.

OCI Nitrogen is on track with the expansion of its CAN line which is
expected to increase capacity by 300 thousand tons per annum or
approximately 25%. The capacity increase will be complete during the
first quarter of 2012. In addition, OCI Nitrogen is also on track to
restart an idle 30 thousand ton melamine plant in Geleen. In addition,
OCI Nitrogen is close to completing its debottlenecking initiative on
its ammonium nitrate (AN) liquor capacity which will maximize
production capacity of its urea ammonium nitrate (UAN) line.

In the US, the OCI Fertilizer Group has signed an agreement to acquire
minorities in Pandora Methanol LLC (Pandora) taking the Group's stake
to 100% one week ahead of scheduled ammonia production. Pandora has
been renamed to OCI North America and rehabilitation of the plant is
on-track with ammonia commissioning currently underway. The methanol
production lines are scheduled to start during the second quarter of
2012. OCI North America will add 250 thousand tons of ammonia and 750
thousand tons of methanol production capacities to the Group. The plant
will supply product to adjacent customers through pipeline connections
and will also nearby port access to ship both ammonia and methanol
along the Gulf Coast.

Egyptian Fertilizer Company (EFC) continues on track with its
debottlenecking initiatives at both its urea production lines which are
expected to be complete by the end of the first quarter of 2012.
Production from the lines will start during the slow demand period of
the third quarter. The debottlenecking at EFC will increase capacity by
250 thousand tons per annum or approximately 20% to an annual capacity
of 1.55 million tons.

All major capital expenditures related to the capacity additions have
been spent and the projects will start contributing to our financial
results during the coming 6 months.

The Construction Group reported a 13.6% growth in backlog over the
previous quarter exemplifying a continued positive improvement in
markets. The Group secured US$ 1.42 billion in new construction work
during the third quarter with new awards for the first nine months
totaling US$ 2.74 billion. We continue to witness strong interest and
demand for the Group's services across our core regional markets. At
present, several key projects are entering negotiation phases and other
high potential projects are currently under bidding. We expect a
continued improvement in our Construction Group backlog by year end.

As part of a move to streamline its two operating groups, OCI's
fertilizer subsidiaries recently secured US$ 2.2 billion of term
facilities which will be used to refinance the Fertilizer Group's
existing credit facilities which had significant portions maturing in
2013. The new credit facilities have been organized at the Fertilizer
Group subsidiaries level to facilitate the creation of standalone
fertilizer and construction businesses under the new proposed holding
company structure. The facilities will be syndicated in due course.

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 / ORSCY
Email:
 omar.darwazah@orascomci.com 

                            Orascom Construction Industries (OCI)
Erika Wakid                 Nile City Towers - South Tower
Email:                      2005A Corniche El Nil
 erika.wakid@orascomci.com    Cairo, Egypt
Hassan Badrawi
Director


Tel: +202 2461 1036/0727/0917
Fax: +202 2461 9409






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