SOURCE: Orascom Construction Industries

April 19, 2006 05:47 ET

Orascom Construction Industries - 2005 Results Release

Cairo -- (MARKET WIRE) -- April 19, 2006 --


OCI Reports Robust Growth in 2005

Consolidated revenue grew 33%, EBITDA rose 21% and net income leaped 54%

Cairo, Egypt - 19 April 2006: Orascom Construction Industries announced consolidated revenue of LE 11,366.6 million with earnings before interest, tax, depreciation and amortization (EBITDA) of LE 2,683.3 million and net income of LE 1,700.2 million for the year ended 31 December 2005. The consolidated results included LE 29.3 million in eliminations of profits from construction services rendered to subsidiaries and LE 73.1 million in foreign exchange losses as a result of a stronger Egyptian pound during the year.

During 2004, OCI reported consolidated revenue of LE 8,555.8 million with EBITDA of LE 2,221.1 million and net income of LE 1,101.3 million which included LE 1.5 million in foreign exchange losses.

For the fourth quarter ended 31 December 2005, OCI reported consolidated revenue of LE 3,096.3 million with an EBITDA of LE 655.6 million and net income of LE 425.7 million. During the same quarter last year, OCI reported consolidated revenue of LE 2,383.8 million with EBITDA of 614.9 million and net income of LE 275.5 million.

OCI Chief Executive Officer, Nassef Sawiris commented "Our Cement Group has witnessed the first of several transformational years. This year we launched four greenfield projects in four countries all of which share a strong cement consumption outlook. The four projects located in Northern Iraq, United Arab Emirates, Algeria and Nigeria will have a combined annual cement capacity of 9 million tons and will have a positive impact on our future performance. Also during the year, OCI acquired a controlling stake in a grinding plant in Spain with an aim to capitalize on the significant disparities in manufacturing costs between North Africa and Europe. Going forward, the Spanish grinder will rely on lower cost emerging market suppliers from within the Group. During the second quarter 2006, the OCI Cement Group will add a total of 6 million tons of cement capacity with the start-up of Egyptian Cement's new bypass line, Pakistan Cement's first production line and the second production line at the leased Tasluja plant in northern Iraq.

Our Construction Group continues to play an instrumental role in the execution of OCI-developed projects and in identifying high-return investment opportunities. The start of construction activities on the greenfield ammonia plant in Egypt with an annual production capacity of 0.7 million tons marks the launch of our efforts to invest in natural gas-based industries that leverage competitively priced natural gas in the region. We aim to replicate the same business model which has been a key driver in the success of our Cement Group greenfield ventures.

Construction operations have maintained their growth momentum with a 32% rise in revenue and steady margins during the year. The consolidated backlog as at 31 December 2005 reached US$ 2.7 billion, up 51% from the same time last year in dollar terms, and reflects a bullish domestic and regional outlook. Our Construction Group secured several milestone projects during the year including a US$ 190 million contract for the construction of a sea-water desalination plant in Algeria, the largest of its kind in North Africa, a US$ 355 million contract for the construction of the new Science & Technology Park in Qatar, and a US$ 197 million contract for the construction of the new Lake View Hotel in Dubai, a part of the Burj Dubai development. During 2006, our construction team will also be busy pursuing select infrastructure concession opportunities in the region that provide large construction contracts and future steady cash flow.

We closed 2005 with a strong balance sheet and a return on equity of 40%. In light of our exceptional returns, the Board of Directors intends to propose a LE 2 per share cash dividend. We have launched our rights issue in order to ensure our ability to capitalize on accretive acquisition opportunities and new greenfield initiatives. Strong results in the first few months of 2006 signal another high growth year. With demand for our cement products and construction services at all time highs, we are confident of our ability to generate substantial value for our shareholders."


CONTACT: Hassan H. Badrawi

Investor Relations Director

Tel: +202 461 1039/1036


Orascom Construction Industries

Orascom Construction Industries (OCI) is a leading cement producer and construction contractor active in emerging markets. As a cement producer, we own and operate cement plants in Egypt, Algeria, Turkey and Spain which have a combined annual production capacity of 14 million tons. Our new investments in Egypt, Pakistan, northern Iraq, Turkey, Nigeria, Algeria, and the United Arab Emirates will increase our annual production capacity to 31 million tons by 2007. As a contractor, we provide engineering procurement and construction services on industrial, commercial and infrastructure projects for private and public customers principally in the Middle East, Africa and Central Asia. OCI also invests in natural gas-based industries and infrastructure concessions.

For additional information on OCI:

Orascom Construction Industries (OCI)

Nile City Towers - South Tower

2005A Corniche El Nil, Cairo, Egypt

Tel: +202 461 1111, Fax: +202 461 9400,

OCI stock symbols: OCIC.CA / ORCI EY / OCICqL / ORSD LI

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