Results as at 30 September 2010 Cairo,
Egypt / November 23, 2010, 10:15 AM
OCI Generates Double-Digit Growth in EBITDA and Net Income during the
first Nine Months of 2010
Summary of Consolidated Results for 9M 2010 Ended 30 September 2010:
* Consolidated revenues grew 25.4% to US$ 3,576.8 million (EGP 19,977.8
million) versus US$ 2,852.2 million (EGP 15,942.9 million) in 9M 2009
* EBITDA increased by 35.7% to US$ 768.8 million (EGP 4,294.9 million)
versus US$ 566.5 million (EGP 3,163.2 million) in 9M 2009
* Consolidated EBITDA margin of 21.5% and Construction Group margin of
15.6% during 9M 2010
* Net income increased by 24.3% to US$ 408.4 million (EGP 2,280.0
million) versus 328.5 million (EGP 1,835.3 million) in 9M 2009
Summary of Consolidated Results for Q3 2010:
* Consolidated revenues increased 33.9% to US$ 1,249.6 million (EGP
7,114.2 million) versus US$ 933.4 million (EGP 5,194.7 million) in Q3
2009
* EBITDA increased 30.7% to US$ 266.0 million (EGP 1,514.8 million)
versus US$ 203.5 million (EGP 1,133.3 million) in Q3 2009
* Consolidated EBITDA margin of 21.3% and Construction Group EBITDA
margin of 15.7% during Q3 2010
* Net income increased 22.3% to US$ 147.6 million (EGP 839.7
million) versus US$ 120.7 million (EGP 672.3 million) in Q3 2009
* Interim cash dividend of US$ 1.00 per share was paid out in
September with annual dividends totaling US$ 414 million or US$ 2.00
per share
Consolidated Construction Group Backlog
* New awards totaled US$ 0.60 billion during the quarter and US$
2.1 billion for the first nine months of the year with infrastructure
work comprising 58.3% of total new awards
* Infrastructure work constitutes 61.2% of the Construction Group
backlog as at 30 September 2010
Statement from the Chairman and Chief Executive Officer - Nassef
Sawiris
Third Quarter Results
OCI reported another set of solid quarterly results and generated
double-digit EBITDA and earnings growth during the first nine months of
the year. During the third quarter, our consolidated EBITDA and net
income grew 30.7% and 22.3% respectively over the same period last
year.
The Fertilizer Group sold over 1.0 million tons of nitrogen-based
fertilizers during the quarter and approximately 2.6 million tons
during the first nine months of the year. Our investment in Gavilon is
performing very well and our results have recorded an investment income
of US$ 10.6 million during the third quarter and US$ 29.3 million for
the first nine months of the year.
In anticipation of a rise in fertilizer prices on the back of improving
farmer economics, export shipments to strategic destinations have been
concentrated for October instead of September. Volumes in the third
quarter particularly in ammonia were shifted to the fourth quarter from
EBIC and OCI Nitrogen. Moreover, the quarter witnessed the bottoming of
nitrogen-based fertilizer prices for the year especially in the months
of July and August.
Global fertilizer prices have improved dramatically from their previous
lows in July/August with selling prices for urea and ammonia currently
around US$ 400. The improvement has been on the back of more robust
agriculture fundamentals and the recent surge in grain prices ahead of
the fall application season. Healthy farmer economics coupled with
rising cash costs for the marginal cost producers in the Ukraine and
China have also helped lift the perceived floor for international urea
and ammonia prices. In addition, we expect further export-supply
constraints from Russia, China and Ukraine as they continue to witness
a surge in domestic demand/consumption for nitrogen-based fertilizers
and a higher need to keep product for local sales.
Construction of Sorfert Algeria continues to progress on-track with the
plant 95.6% complete as at the end of September and commissioning is
expected to commence during the first half of 2011.
During the quarter, the Fertilizer Group reviewed its minority
investments and capitalized on an opportunity to strategically reduce
its effective stake in Notore Chemicals Industries Ltd. from 23.0% to
13.5% posting a capital gain of US$ 19.1 million or 2.5x book value.
The Group secured a put option agreement to protect the balance of our
remaining stake in Notore for a period of time. It is company policy to
evaluate the performance of minority investments with no management
control as financial investment assets. Accordingly, we believe that by
reducing our non-controlling stake in Notore we were able to generate
immediate value to shareholders.
Our Construction Group secured US$ 0.60 billion in new construction
work during the third quarter with new awards for the first nine months
totaling US$ 2.1 billion. We have already witnessed a pickup in bid
evaluations and new award negotiations in September post summer,
Ramadan and the Eid holidays. The outlook for infrastructure awards in
the region has improved and bidding activity in the sector has
accelerated in the last few months.
In recent weeks, several Public-Private-Partnership (PPP) opportunities
were launched by the Egyptian Government which will be of interest to
the Construction Group as well as the OCI-MS Infrastructure Joint
Venture.
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
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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The company news service from the London Stock Exchange
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