Results as at 31 December 2010 Cairo, Egypt / March 8, 2011, 8:30 AM
OCI Generates Double-Digit Growth in EBITDA and Net Income during 2010
Helped by Integration of Dutch Fertilizer Business
Summary of Consolidated Results for FY 2010 Ended 31 December 2010:
* Consolidated revenues grew 27.8% to US$ 4,896.0 million (EGP 27,558.7
million) versus US$ 3,829.0 million (EGP 21,312.8 million) in FY 2009
* EBITDA increased by 36.8% to US$ 1,086.6 million (EGP 6,117.4
million) versus US$ 794.4 million (EGP 4,421.2 million) in FY 2009
* Consolidated EBITDA margin of 22.2% and Construction Group margin of
15.8% during FY 2010
* Net income increased by 36.9% to US$ 594.2 million (EGP 3,344.5
million) versus 434.1 million (EGP 2,416.5 million) in FY 2009
Summary of Consolidated Results for Q4 2010:
* Consolidated revenues increased 34.9% to US$ 1,319.4 million (EGP
7,580.8 million) versus US$ 977.8 million (EGP 5,387.1 million) in Q4
2009
* EBITDA increased 39.4% to US$ 317.8 million (EGP 1,822.5 million)
versus US$ 228.0 million (EGP 1,258.0 million) in Q4 2009
* Consolidated EBITDA margin of 24.1% and Construction Group EBITDA
margin of 16.3% during Q4 2010
* Net income increased 76.1% to US$ 186.0 million (EGP 1,064.5
million) versus US$ 105.6 million (EGP 581.8 million) in Q4 2009
* Maintain interim cash dividend of US$ 1.00 per share to be paid
out early April
Consolidated Construction Group Backlog
* New awards totaled US$ 0.55 billion during the quarter and US$
2.62 billion for the full yearwithinfrastructure work comprising 62.6%
of total new awards during the year
* Infrastructure work constitutes 58.6% of the Construction Group
backlog as at 31 December 2010
Statement from the Chairman and Chief Executive Officer - Nassef
Sawiris
Fourth Quarter Results
OCI reported a stellar fourth quarter and solid full year results.
During the fourth quarter, our consolidated EBITDA and net income grew
39.4% and 76.1% respectively over the same period last year and 19.5%
and 26.1% respectively over the third quarter. During the year, EBITDA
and Net Income grew 36.8% and 36.9% respectively over the full year
2009.
The Fertilizer Group sold over 1.0 million tons of nitrogen-based
fertilizers during the quarter and approximately 3.7 million tons
during the year. Our investment in Gavilon performed very well and our
results have recorded an investment income of US$ 14.1 million during
the fourth quarter and US$ 43.4 million for the year.
During the quarter, farmer economics improved dramatically helping lift
netback urea, ammonia and calcium ammonium nitrate (CAN) prices 22.5%,
20.8% and 34.6% respectively which in turn yielded better returns for
the Fertilizer Group. Ammonia volumes had been strategically held back
from September to October in anticipation of these price increases and
as a result ammonia sales volumes increased 23.9% over the previous
quarter.
We expect fertilizer prices to remain healthy during 2011 with prices
fluctuating based on regular seasonal variations in demand. Industry
fundamentals and farmer economics remain robust supported by historic
all-time highs in prices of wheat and corn. In addition, massive global
supply shocks to wheat in 2010 have helped push prices higher and
depleted inventory levels. Russia and the Ukraine continue to see their
domestic demand for nitrogen-based fertilizers strengthen. In addition,
rising coal prices in China have pushed Chinese production cash costs
higher which have raises the floor for globally traded urea.
During the year, the global melamine market showed signs of strength
with demand increasing 27.0% compared to 2009 and prices during the
year remaining firm.
The expansion of our CAN line in the Netherlands is on track with
300,000 tons of additional capacity expected to be completed during
2012.
Construction of Sorfert Algeria continues to progress on-track with the
plant 96.0% complete as at the end of January. Select utility
commissioning has already commenced and the plant is expected to start
commercial production in the fourth quarter of 2011. Our partner
Sonatrach is being very supportive in ensuring that the final
completion and commissioning of the plant proceed on target.
The Construction Group generated robust EBITDA margins of 15.8% and
16.3% during the year and fourth quarter respectively. The Group
secured US$ 0.55 billion in new construction work during the quarter
with new awards totaling US$ 2.62 billion for the year. The Group
continues to progress on various contract negotiations and has been
awarded approximately US$ 50 million of awards in Egypt during the
month of February alone. Prospects for construction awards continues to
be positive with the Group submitting bids for several large
infrastructure and road projects in the coming few weeks.
Despite disruptions due to political unrest in Egypt, our fertilizer
production facilities continued to produce at normal operating rates.
The Construction Group lost 6 days of construction site activity during
the month but work sites resumed activity immediately thereafter.
We would also like to announce that the company has created two new
senior positions:
Mr. Osama Bishai has been appointed Chief Operating Officer for the
Construction Group. Mr. Bishai has 26 years of experience with OCI.
Mr. Renso Zwiers has been appointed Chief Operating Officer for the
Fertilizer Group. Mr. Zwiers has over 20 years of fertilizer industry
experience and joined OCI last year with the acquisition of Royal DSM
N.V's Agro and Melamine businesses - renamed OCI Nitrogen.
For additional information contact:
For additional information on OCI:
OCI Investor Relations Department: www.orascomci.com
Omar Darwazah OCI stock symbols: OCIC.CA / ORCI
Email:omar.darwazah@orascomci.com EY /OCICqL / ORSD / ORSCY
Erika Wakid Orascom Construction Industries
Email:erika.wakid@orascomci.com (OCI)
Nile City Towers - South Tower
2005A Corniche El Nil
Cairo, Egypt
Hassan Badrawi
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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