SOURCE: Orascom Construction Industries

June 01, 2005 06:09 ET

Orascom Construction Industries - OCI Posts 82% Earnings Growth

Cairo -- (MARKET WIRE) -- June 1, 2005 --

Orascom Construction Industries
Nile City Towers - South Tower
2005 A Corniche El Nil
Cairo, Egypt 11221
Phone 20-2-461-111
Fax 20-2-461-9400

OCI Posts 82% Earnings Growth during Q1 2005

OCI consolidated revenue grows 97%, EBITDA rises 42% and net income climbs 82%

Cairo, Egypt - 31 May 2005: Orascom Construction Industries (stock symbols: OCIC.CA / ORCI EY / OCICq.L / ORSD LI) announced consolidated revenue of LE 2,440.0 million with earnings before interest, tax, depreciation and amortization (EBITDA) of LE 621.4 million and net income of LE 340.5 million for the first quarter ended 31 March 05. The consolidated results included a LE 25.5 million loss on foreign exchange.

Last year, OCI had consoldiated revenue of LE 1,241.3 million with an EBITDA of LE 439.1 million and net income of LE 186.8 million. Consolidated results included a LE 10.3 million gain on foreign exchange.

OCI Chief Executive Officer, Mr. Nassef Sawiris commented "Revenue from our Cement Group reached LE 599 million, up 14% over last year. Unusually harsh weather conditions affected both domestic sales volumes in Algeria and export sales volumes from Egypt to Europe during the quarter. Cement consumption in Egypt, however, increased significantly during the quarter and we believe this trend will be sustainable throughout the year. Construction work on our second 2.5 million ton per year production line in Algeria will be completed in June and work on our new cement ventures in Pakistan, Northern Iraq and Nigeria is underway. De-bottlenecking of our cement plants in Egypt and Algeria has progressed rapidly and initial test runs in Egypt indicate that our annual cement production capacity will reach 8.5 million tons.

Revenue from our Construction Group reached LE 2 billion, up 118% over last year. The performance of all our construction businesses has been impressive. Construction activity in all our regional markets continues to expand and a wide array of new industrial, infrastructure and commercial projects have been recently announced. Although our consolidated backlog grew 4% from December to LE 11.4 billion, we have sufficient capacity to take on new projects and are well positioned to deliver high value for money solutions to our customers."

Mr. Sawiris added "We have reorganized our financial reporting this quarter to reflect the increased importance of our cement operations to our overall financial performance. We are extremely proud of our Cement Projects Team which continues to find new opportunities and oversee the construction of new plants at a world record pace. Through development of new greenfield projects and selective acquisitions, we intend to strengthen our position as the leading cement producer active in emerging markets."

For Details, Contact:
Hassan H. Badrawi
Investor Relations Manager
Phone:   20-2-461-1039
Fax:     20-2461-9409

                      This information is provided by RNS
            The company news service from the London Stock Exchange