Results as at 30 June 2009 Cairo, Egypt / September 3, 2009, 10:15 AM
OCI Announces USD 1.17 billion of New Awards during the Quarter
Summary of Consolidated Results for Q2 2009:
- Consolidated revenue grew 31.8% to USD 1,091.0 million (EGP 6,101.5
million) versus USD 827.8 million (EGP 4,598.8 million) in
Q1 2009
- EBITDA increased by 6.4% to USD 187.0 million (EGP 1,045.8 million)
versus USD 175.8 million (EGP 976.6 million) in Q1 2009
- Income from investments decreased by 91.6% to USD 1.6 million (EGP
8.9 million) in Q2 2009 versus USD 19.1 million (EGP 106.1 million)
in Q1 2009
- Income before taxes and minority interest increased by 2.2% to
USD 130.7 million (EGP 731.0 million) in Q2 2009 versus
USD 127.9 million (EGP 710.5 million) in Q1 2009
- Net income decreased by 3.1% to USD 102.4 million (EGP 572.7
million) in Q2 2009 versus USD 105.7 million (EGP 587.2 million) in
Q1 2009
- Consolidated revenue grew 12.0% to USD 1,091.0 million
(EGP 6,101.5 million) versus USD 974.4 million
(EGP 5,329.9 million) in Q2 2008
- EBITDA decreased by 27.7% to USD 187.0 million
(EGP 1,045.8 million) versus USD 258.7 million
(EGP 1,415.1 million) in Q2 2008
- Consolidated EBITDA margin of 17.1% and Construction
Group EBITDA margin of 13.0% for Q2 2009
- Net income decreased by 58.2% to USD 102.4 million
(EGP 572.7 million) versus USD 245.0 million (EGP 1,340.1 million)
in Q2 2008
- Interim cash dividend of USD 0.80 per share to be paid out at the
end of September
- Infrastructure work constitutes 62.6% of the Construction
Group backlog as at H1 2009 versus 48.1% during the same period
last year
Summary of Consolidated Results for H1 2009 Ended 30 June 2009:
- Consolidated revenue grew 12.4% to USD 1,918.8 million
(EGP 10,731.1 million) versus USD 1,707.7 million
(EGP 9,340.9 million) in H1 2008.
- EBITDA decreased by 14.2% to USD 363.1 million
(EGP 2,030.7 million) versus USD 423.2 million
(EGP 2,314.9 million) in H1 2008
- Consolidated EBITDA margin of 18.9% and Construction Group margin
of 14.0% for H1 2009
- Net income from continued operations decreased by 54.6% to
USD 208.2 million (EGP 1,164.4 million) versus USD 458.6 million
(EGP 2,508.5 million) in H1 2008
Consolidated Construction Group Backlog
- Consolidated backlog remained flat at USD 7.21 billion compared to
Q1 2009 and reflected a growth of 4.0% over the backlog as at
31 December 2008 and 3.0% growth over the same period last year
- New awards during the second quarter totaled USD 1.17 billion of
which 80% was infrastructure work
Statement from the Chief Executive Officer - Nassef Sawiris
Second Quarter Results
We are pleased to report that OCI had a good operating quarter despite
a difficult global environment. Our second quarter
revenue grew 31.8% over the previous quarter from USD 827.8 million to
USD 1,091 million and EBITDA grew 6.4% from USD 175.8 million to
USD 187.0 million.
Our second quarter earnings were impacted by a one off inventory
write-down from Gavilon (OCI owns 18% of Gavilon) as a result of lower
fertilizer prices, low volumes in the US and lower than expected
performance of its grains business.
Urea average selling prices stayed constant throughout the year at USD
265 per tonne versus USD 480 per tonne during H1 2008. Revenue
increases and healthy EBITDA margin from the Construction
Group partially alleviated the drop of fertilizer prices compared to
last year.
Construction Group
The Construction Group reported revenue growth of 23.7% during
the second quarter over the same period last year with an EBITDA margin
of 13.0%. The Construction Group also reported revenue growth of 31.6%
over the previous quarter. The Group benefited from the infrastructure
expansion programs in Egypt and the region announcing approximately USD
1.17 billion of new work during the quarter totaling USD 2.1 billion
for H1 2009. Our consolidated Construction Backlog at the close of the
quarter was USD 7.2 billion, reflecting a growth of 4.0% over the
backlog as at 31 December 2008 and 3.0% growth over the same period
last year.
The Construction Group also announced the first
Public-Private-Partnership (PPP) project in Egypt on the New Cairo
Wastewater plant. The 20-year concession was tendered by the Egyptian
Ministry of Housing, Utilities & Urban Developments in coordination
with the Ministry of Finance. The net present value of revenues to
be generated during the concession period is estimated at USD 472
million including the Engineering, Procurement and Construction of
the plant in addition to the Operations & Maintenance during the
contract period. Approximately 20% of the total contract value has been
booked as construction backlog. OCI chose not to book the balance which
represents O&M revenue in the Construction Group backlog.
Infrastructure work awarded during the quarter comprised
approximately 80% of total new orders and included including roads and
general infrastructure. Our overall backlog has been reduced by
approximately USD 200 million to reflect the cancellation of some
commercial work to be undertaken by the BESIX Group in Dubai. The
BESIX Group does not expect further cancellations of work. Looking
ahead for the remainder of the year, the Construction Group has a
healthy pipeline of potential new work.
Fertilizer Group
During the quarter, the Fertilizer Group commissioned Egypt Basic
Industries Corporation (EBIC), a 0.7 mpta ammonia plant adjacent to
Egyptian Fertilizer Company (EFC) near the Sokhna Port on the Red Sea.
EBIC has already sold over 70,000 tonnes of ammonia during the quarter
at an average price of USD 201 and over 100,000 tonnes
year-to-date. Since then, the plant has achieved a stable production
run rate and is operating at 105% of its name-place capacity.
Sorfert Algeria continues on track for commissioning during 2011
and was 76.4% complete as at 30 August 2009. Also during the quarter,
the Fertilizer Group started marketing urea in Brazil via its agreement
with Group Fertipar selling approximately 50,000 tonnes of urea valued
at USD 14 million. The Fertilizer Group also started production of
Ammonium Sulphate through its recently signed toll-manufacturing
agreement.
The Fertilizer Group is well underway with its organic growth
initiatives. The EFC capacity revamp/upgrade program is currently in
progress and is expected to raise production capacity by 2011.
The Group has earmarked USD 200 million of capital expenditure during
2010 for high-return organic opportunities which include the upgrade of
EFC and investments in downstream products.
For additional information For additional information on OCI:
contact:
OCI Investor Relations Department: www.orascomci.com
Omar Darwazah OCI stock symbols: OCIC.CA / ORCI
Email: omar.darwazah@orascomci.com EY / OCICqL / ORSD
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
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The company news service from the London Stock Exchange
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