OCI reports 43% growth in consolidated revenue and a 57% rise in net income for the six months ended 30 June 2005.
Orascom Construction Industries announced consolidated revenue of LE 5,365m with EBITDA of LE 1313.1m and net income of LE 789.7m for the six months ended 30 June 2005. The consolidated results included LE 30.9 million in foreign exchange losses and LE 74.2 million in negative goodwill amortization relating to the acquisition of 50% of BESIX last year.
During the same period last year, OCI reported consolidated revenue of LE 3,754.7 million with EBITDA of LE 1,037.7 million and net income of LE
504.5 million.
For the second quarter ended 30 June 2005, OCI reported consolidated revenue of LE 2,924.9 million with EBITDA of LE 691.7 million and net income of LE 449.2 million. The quarter results included LE 5.5 million in foreign exchange losses and LE 36.0 million in negative goodwill
amortization.
During the same quarter last year, OCI reported consolidated revenue of LE 2,513.3 million with EBITDA of 597.7 million and net income of LE 315.9 million.
OCI Chief Executive Officer, Nassef Sawiris commented "For the first six months of the year, consolidated revenue increased by 43%, EBITDA grew 27% and net income rose 57% over last year.
The 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 US$ 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.
During the quarter, the cement group continued to add new production capacity through both greenfield projects in new markets and expansion projects in existing markets. In June, Algerian Cement Company successfully began operations of its second production line ensuring their leadership position in the Algerian market. The de-bottlenecking project at Egyptian Cement Company has already increased their annual production capacity to 8.5Mt. Rehabilitation work on the first production line at Tasluja Cement in northern Iraq will be completed in December. OCI has received approval to raise its stake in Pakistan Cement Company from 52.5 to 60.6 per cent and we expect operations to begin during the second quarter 06. The EPC contract for our greenfield cement project in northern Iraq has been signed and mobilization on site is underway. The company expects its investment in a new import terminal in Sudan to pave the way for a continued flow of cement exports from Egypt. Our announced target of 24Mt in overall cement capacity by year end 2007 is fast becoming a reality.
“We remain confident of our ability to open up new frontiers and capitalize on growth opportunities in key strategic emerging markets. We believe our focus on cement manufacturing will continue to create value for our shareholders and that our strong balance sheet will enable us to pursue both greenfield projects and selective acquisitions," the company said.
