New projects help to double Orascom Construction net profit

Orascom Construction, which trades on the Egyptian and Abu Dhabi stock exchanges, saw net profit more than double in the first quarter supported by new projects.

These included data centres in the US and an industrial wastewater treatment facility in Saudi Arabia.

Consolidated revenue rose 73 percent year on year to $1.5 billion in the quarter ended March 31, the contractor said in a statement to the Abu Dhabi Securities Exchange.

Middle East and Africa operations contributed 51 percent of total revenue, while the US operations accounted for the rest.

Net profit rose 113 percent annually to $53.4 million, while net profit margin rose to 3.6 percent in the quarter.

Consolidated backlog increased almost 8 percent year on year to $9.4 billion. Total new awards rose 15 percent annually to $1.9 billion.

“While we remain focused on project controls, we continue to monitor potential cost increases in the current uncertain environment. We are also working closely with our clients and are prepared to reassess our cost structure as conditions evolve,” said CEO Osama Bishai.

The company is targeting financial close on a new 900-megawatt wind farm in the Gulf of Suez, Egypt, by early third quarter.

In addition, construction activities are progressing at Project Wave, the 30-year seawater treatment and water supply project in Abu Dhabi.

In September, Orascom Construction said it was considering a merger with OCI Global, a Dutch-based chemical and fertiliser company.

Shareholders have not yet voted on the transaction, which is subject to regulatory approvals, a statement said.

The company’s shares closed 3.7 percent higher at AED48 on the ADX on Wednesday, nearly 43 percent up in the year to date.