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

May 11, 2011 04:57 ET

OCI Reports Strongest Quarter on Record

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



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          The company news service from the London Stock Exchange

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