Orascom profits soar despite forex losses

Construction big gun achieves 57% rise in net income

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By  Sean Cronin Published  September 10, 2005

Orascom Construction Industries recorded a massive 43% increase in revenue for the first half of the year and a 57% rise in net income. The regional construction giant announced consolidated revenue of US $932.2 million (LE 5,365.0 million) with a net income of $137.2 million. But the results included $5.4 million in foreign exchange losses for the first six months of 2005 as well as $12.9 million in negative goodwill relating to the acquisition of 50% of contractor BESIX last year. Chief executive Nassef Sawiris said: “Our construction group continued to witness significant demand for its construction services in the Gulf region and North Africa during the quarter. “The consolidated backlog doubled compared to the same time last year to reach a record $2.1 billion as at 30 June 05. We anticipate continued growth in our backlog and remain confident of our ability to take on new projects.” The company’s cement production also increased in the last six months with plans to lift overall capacity to 24 million tonnes by the end of 2007. Orascom’s hotels division recently embarked on its first project in the UAE — The Cove in Ras Al Khaimah, a hotel and leisure project, which will include 134 villas.

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