Despite reporting a double-digit percent increase in profit in 2021 due to improved collections and liquidity management, Orascom Construction reported a profit of $15.3 million at the end of the first six months of 2021.
Orascom Construction is Egypt’s richest family-founded multinational engineering and construction corporation.
The leading engineering and construction behemoth reported a profit of $15.3 million in the first quarter of 2022, down more than 43.1 percent from the $26.9 million in profit reported in the first quarter of 2021, according to recently published financial results.
Despite a 20-percent increase in revenue from $816.6 million to $979.9 million, the group’s earnings power was hampered by a surge in direct costs above $880 million, combined with an increase in operating expenses during the period under review.
Osama Bishai, CEO of Orascom Construction, commented on the financial performance, saying: “We indicated in the previous quarter that we expected to experience challenges associated with the changing global economic environment.”
“As always, we continue to prioritize project controls, cost optimization, supply chain, and collections. Our new awards strategy is also unchanged as we continue to focus on high-quality projects across our geographies in sectors in which we are competitive,” he said.
The group was able to keep its project backlog at $5.5 billion by awarding $617.5 million in new contracts during the first quarter of 2022.
Despite the depreciation of the Egyptian pound, the backlog is consistent with the level achieved a year ago, as it was supported by high-profile infrastructure projects in Egypt denominated in foreign currency, as well as projects in other markets in the Middle East, Africa and the United States.
As part of its commitment to shareholders, the board proposed a $27-million dividend distribution to be paid in the third quarter of 2022. This is the group’s fifth consecutive year of dividend payments.
Orascom Construction is a leading global engineering and construction contractor, with active operations and investments in the Middle East, Africa, and the United States.
Egypt’s richest man Nassef Sawiris owns 28.97 percent of the group, or 33,825,323 ordinary shares, while OS Private Trust Company owns 51.8 percent of the Egypt-based contractor for the benefit of the Sawiris family.
