CAIRO, EGYPT--(Marketwire - May 11, 2011) -
Results as at 31 March 2011 Cairo, Egypt / May 11, 2011, 10:15 AM OCI Reports Strongest Quarter on Record on the Back of Robust Performance from European Operations and Continues Double-Digit Growth Summary of Consolidated Results for Q1 2011: . Consolidated revenues grew 28.0% to USUSD 1,261.6 million (EGP 7,383.3 million) versus USUSD 985.4 million (EGP 5,400.1 million) in Q1 2010 . EBITDA increased by 43.3% to USUSD 334.7 million (EGP 1,958.9 million) versus USUSD 233.6 million (EGP 1,280.8 million) in Q1 2010 . Consolidated EBITDA margin of 26.5% and Construction Group margin of 16.4% during Q1 2011 . Net income increased by 76.9% to USUSD 206.1 million (EGP 1,206.3 million) versus USUSD 116.5 million (EGP 639.2 million) in Q1 2010 partially supported by strong results from Gavilon Summary of Consolidated Results for Q1 2011 versus Q4 2010: . Consolidated revenues declined 4.3% to USUSD 1,261.6 million (EGP 7,383.3 million) versus USUSD 1,318.3 million (EGP 7,574.6 million) in Q4 2010 . EBITDA increased by 4.9% to USUSD 334.7 million (EGP 1,958.9 million) versus USUSD 319.2 million (EGP 1,829.9 million) in Q4 2010 . Net income increased by 10.8% to USUSD 206.1 million (EGP 1,206.3 million) versus USUSD 186.0 million (EGP 1,064.5 million) in Q4 2010 Consolidated Construction Group Backlog . New awards totaled USUSD 0.33 billion during the quarter . Infrastructure work constitutes 53.9% of the Construction Group backlog as at 31 March 2011 Statement from the Chairman and Chief Executive Officer - Nassef Sawiris First Quarter Results OCI reported a record first quarter. During the first quarter, our consolidated EBITDA and net income grew 43.3% and 76.9% respectively over the same period last year and 4.9% and 10.8% respectively over the fourth quarter. The first quarter reflects financial contribution from OCI Nitrogen which was not included during the same period last year given the timing of the transaction's financial close. The Fertilizer Group sold over 1.1 million tons of nitrogen-based fertilizers during the quarter compared with 0.47 million during the same period last year. Our investment in Gavilon continues to perform very well and our results have recorded an investment income of USUSD 25.5 million during the first quarter compared with USUSD 14.1 million and USUSD 43.4 during the fourth quarter and full year 2010 respectively. During the quarter, netback ammonia and calcium ammonium nitrate (CAN) prices increased 21.5% and 38.4% respectively helping generate record earnings for the Fertilizer Group. In March, urea prices declined on the back of seasonal demand variation however prices have already rebounded and the Group is currently selling urea at levels similar to the fourth quarter of last year. Ammonia and CAN prices were firm on the back of robust demand from North America and Europe. We expect fertilizer prices to remain firm. Rising coal prices in China have pushed Chinese production cash costs higher which in turn have raised the global floor of urea prices. Moreover, farmer economics continue to look healthy with corn and wheat reaching historic average highs During the quarter, the melamine market continued to show signs of strength with netback prices increasing 12.5% compared with the fourth quarter of 2010. The Fertilizer Group's organic growth initiatives continued on track with the expansion of the CAN line in the Netherlands expected to be in full production during 2012. The expansion is expected to add 300,000 tons or approximately 25% of additional capacity. Sorfert Algeria continues to progress on track with the plant 96.4% complete as at the end of March. Our plans for a September start-up and full commercial production by the fourth quarter are on track. Despite losing 10 days of construction site activity in Egypt during the quarter, the Construction Group maintained its momentum and generated better than expected EBITDA margins on select projects. On a consolidated basis, this helped the Group generate a robust EBITDA margin of 16.4%. In addition, the Group secured USUSD 0.33 billion in new construction work during the quarter. Despite a slow tendering/award environment in Egypt, the Group is currently announced the preferred bidder on projects valued at over USUSD 1 billion. Moreover, despite political unrest in our key regional markets during the quarter, we feel confident that infrastructure spending will continue to accelerate in order to stimulate these markets' economies and create immediate employment. Our efforts in Saudi Arabia are starting to show signs of success. The Group will continue to target large-scale industrial and infrastructure contracts that meet the key performance indicators and profitability levels. For additional information For additional information on OCI: contact: 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 This information is provided by RNS The company news service from the London Stock Exchange END
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