Orascom Construction, a Cairo-based multinational engineering and construction firm led by the Sawiris family, the richest family in North Africa and the Arab world, has announced that it will be rewarding its shareholders with an interim dividend payout of $21.6 million.
The decision, which was approved by the company’s Board of Directors, translates to an interim dividend of $0.1850 per share.
According to a press release on the company’s website, the dividend will be paid to qualifying shareholders on Feb. 9. Shareholders holding shares on Nasdaq Dubai will receive the dividend in U.S. dollars, while those holding shares on the Egyptian Exchange will receive it in Egyptian pounds at the record date.
Orascom Construction was founded by the late Egyptian businessman Onsi Sawiris, who passed away on June 29, 2022, at the age of 91. Today, the Sawiris family, through the OS Private Trust Company, owns 51.8 percent of the company, with Egypt’s richest man Nassef Sawiris owning 28.97 percent.
Despite a double-digit increase in revenues from $2.54 billion to $3.05 billion, the company’s profit declined by 16.62 percent from $84.20 million to $70.20 million during the first nine months of its 2022 fiscal year. Additionally, the consolidated project backlog, excluding BESIX, decreased by 4.9 percent year-over-year to $5.7 billion as of Sept. 30, 2022.
However, it’s worth noting that this figure assumes the EGP-to-foreign currency rates as of Oct. 31, which fully reflects the flotation of the EGP that took place on Oct. 27. If the EGP-to-foreign currency rates as of Sept. 30 were used, the backlog would have been $365 million higher at $6.1 billion, in line with the level recorded the previous year.
Despite the decline in profit, the company’s decision to pay an interim dividend to shareholders is a positive sign for investors. The Sawiris family’s continued ownership and leadership in the company also adds an extra layer of confidence.
The family’s significant ownership stake in Orascom Construction, which stands at 51.8 percent, will result in them receiving the bulk of the interim dividend.
