CAIRO, EGYPT--(Marketwire - Sep 6, 2011) -
Results as at 30 June 2011 Cairo, Egypt / September 6, 2011, 8:30 AM OCI Secures US$ 1 billion of New Construction Contract Awards and Generates Double Digit Growth in EBITDA and Net Income during Q2 2011 Summary of Consolidated Results for Q2 2011(1): * Consolidated revenues increased 9.8% to US$ 1,473.6 million (EGP 8,760.1 million) versus US$ 1,341.8million (EGP 7,463.5 million) in Q2 2010 * EBITDA increased 33.9% to US$ 360.6 million (EGP 2,145.1 million) versus US$ 269.3 million (EGP 1,499.2 million) in Q2 2010 * Consolidated EBITDA margin of 24.5% and Construction Group EBITDA margin of 13.0% during Q2 2011 * Net income increased 14.7% to US$ 165.2 million (EGP 985.4 million) versus US$ 144.0 million (EGP 801.1 million)in Q2 2010 * Interim cash dividend of US$ 1.10 per share to be paid during the fourth quarter bringing total cash dividends paid during calendar year 2011 to US$ 2.1 per share Summary of Consolidated Results for H1 2011 Ended 30 June 2011: * Consolidated revenues grew 17.5% to US$ 2,735.1 million (EGP 16,143.4 million) versus US$ 2,327.2 million (EGP 12,863.6 million) in H1 2010 * EBITDA increased by 38.2% to US$ 695.3 million (EGP 4,104.0 million) versus US$ 503.0 million (EGP 2,780.1 million) in H1 2010 * Consolidated EBITDA margin of 25.4% and Construction Group margin of 14.6% during H1 2011 * Net income increased by 42.4% to US$ 371.3 million (EGP 2,191.7 million) versus US$ 260.7 million (EGP 1,440.3 million) in H1 2010 Consolidated Construction Group Backlog * Consolidated backlog as at 30 June 2011 stood at US$ 5.23 billion reflecting an increase of 2.4% over the backlog as at 31 March 2011 * New awards totaled US$ 1.0 billion during the quarter and US$1.33 billion for the first half of the year * Infrastructure work constitutes 57.5% of the Construction Group backlog as at 30 June 2011 (1) Consolidated financial figures presented in this press release are unaudited Statement from the Chairman and Chief Executive Officer - Nassef Sawiris Second Quarter Results OCI has continued to report strong results during 2011. During the first half, our consolidated EBITDA and net income grew 38.2% and 42.4% respectively over the same period last year. Net income during the second quarter was impacted as a result of an increase to the Egyptian corporate income tax rate from a previous 20% to 25%. The tax calculation was required to include adjustments for the first quarter as well, resulting in total tax adjustments of approximately US$ 23 million of which US$ 17 million were deferred tax adjustments related to current and previous periods. During the second quarter, the Fertilizer Group sold approximately 1.17 million tons of nitrogen-based fertilizers. Despite witnessing a soft fertilizer pricing patch during the quarter, prices have already rebounded in late July and August. Backed by strong fundamentals in commodities, the rebound should bode well for prices during the next 12 months. Ammonia and calcium ammonium nitrate (CAN) prices have remained firm throughout the year on the back of robust demand from North America and Europe. The Fertilizer Group is currently focused on its organic initiatives and major capacity additions in Egypt, Algeria, the Netherlands and the US. All major capital expenditures related to these initiatives have been spent and all the projects are currently in commissioning phases to start contributing to earnings during the coming 6 months. Commissioning of Sorfert Algeria continues to progress on-track and the plant is scheduled to enter commercial production before the end of the year. Sorfert will add 1.2 million tons of urea and 0.8 million tons of ammonia to the Group annually. In the Netherlands, OCI Nitrogen is on track with the expansion of its CAN line which is expected to increase capacity by 300 thousand tons per annum or approximately 25%. The capacity increase will be complete in early 2012. OCI Nitrogen is also restarting a 30 thousand ton melamine plant in Geleen which has been shutdown since 2008. The plant is expected to start operations by year end. Moreover, OCI Nitrogen is also debottlenecking its ammonium nitrate (AN) liquor capacity which will maximize production capacity of its urea ammonium nitrate (UAN) line. In the US, turnaround of Pandora Methanol LLC (Pandora) is on-track with the ammonia and methanol production lines scheduled to start during the fourth quarter of 2011 and second quarter of 2012 respectively. Pandora will add 250 thousand tons of ammonia and 750 thousand tons of methanol production capacities to the Group. In addition, the plant has an ammonia tank with a capacity of 18 thousand tons and two methanol storage tanks with a capacity of 22 thousand tons each. The plant has pipeline connections to adjacent customers and port access with dedicated methanol and ammonia import/export jetties and will ship both products along the Gulf Coast. Egyptian Fertilizer Company's (EFC) debottlenecking initiatives at EFC Line II and EFC Line I are expected to be complete before the end of the first quarter of 2012. The debottlenecking at EFC will increase capacity by 250 thousand tons per annum or approximately 20% to an annual capacity of 1.55 million tons. The Construction Group reported a 2.4% increase in backlog over the previous quarter, the first such increase in 6 quarters. The Group secured US$ 1 billion in new construction work during the second quarter with new awards for the first half totaling US$ 1.33 billion. The Group also managed to secure sizeable contract awards in Egypt despite a slow tendering environment ahead of parliamentary and presidential elections scheduled for the fourth quarter and the first quarter of next year. In addition, the Group is currently in advanced negotiation stages in several markets across the region for contracts totaling north of US$ 1 billion. These markets include Egypt, UAE, Iraq, Morocco and Saudi Arabia. We expect an improvement in our Construction Group backlog by year end. OCI is commencing a process to change its legal status in to a Law 95 Holding Company. The proposal will be shortly put forward to the shareholders in an Extraordinary General Meeting (EGM). Post EGM approval, the proposal will require the approval of the Egyptian Financial Services Authority (EFSA) and the Investment Authority. The primary aim of this move is to reorganize the two operating businesses in to two separate legal structures under the umbrella of the proposed holding company. The Board of Directors has approved the second installment of our biannual dividend of US$ 1.10 dollar per share to be paid during the first week of October. The second installment puts total dividends for the year at US$ 2.10 per share. For additional information contact: OCI Investor Relations Department: Omar Darwazah Email: omar.darwazah@orascomci.com Erika Wakid Email: erika.wakid@orascomci.com Hassan Badrawi Director Tel: +202 2461 1036/0727/0917 Fax: +202 2461 9409 For additional information on OCI: www.orascomci.com OCI stock symbols: OCIC.CA / ORCIEY / OCICqL / ORSD / ORSCY Orascom Construction Industries (OCI) Nile City Towers - South Tower 2005A Corniche El Nil Cairo, Egypt This information is provided by RNS The company news service from the London Stock Exchange END
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