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Cairo-based construction giant Orascom Construction, led by Egypt’s wealthiest family, has defied the odds and reported a staggering profit of $40.1 million at the end of the first quarter of its 2023 fiscal year.
The impressive figure represents a remarkable 162.1-percent increase from the profit of $15.3 million that it posted in the same period last year, as disclosed in the company’s recently published financial statement.
Despite facing a challenging operating environment, Orascom Construction managed to achieve this triple-digit surge in earnings, even as its revenue experienced a 17.8-percent decrease, falling from $979.7 million in Q1 2022 to $804.9 million.
The devaluation of the Egyptian pound contributed to the decline in revenue.
Although the group’s consolidated backlog, excluding its Belgian-French construction subsidiary BESIX, experienced a slight decrease of 1.2 percent, reaching $5.5 billion as of March 31, 2023, the overall backlog increased by 3.6 percent.
Additionally, consolidated new project awards soared by an impressive 39 percent to $858.4 million in the first quarter of 2023
Meanwhile, BESIX’s standalone backlog reached a record €5.7 billion ($6.1 billion), a 13.3-percent increase, with new awards surging by 33.7 percent to €1.0 billion ($1.07 billion) in Q1 2023. Notably, BESIX secured projects in Saudi Arabia, Europe, and Australia.
Orascom Construction, a renowned multinational engineering and construction firm, holds a strong presence and significant investments across the Middle East, Africa, and the United States.
Established in 1950 by the late Egyptian businessman Onsi Sawiris, the company is majority-owned by the Sawiris family, with a 51.8-percent stake through their private investment firm, OS Private Trust Company.
Nassef Sawiris, one of Onsi’s sons and Egypt’s wealthiest man, possesses a 28.97 percent ownership stake, solidifying the family’s considerable influence over the organization.
Despite the hurdles faced in its operating environments, Orascom Construction has showcased resilience and astuteness in navigating the challenges posed by the devaluation of the Egyptian pound.
The impressive Q1 profit surge highlights the company’s ability to adapt and capitalize on new opportunities, positioning it as a global leader in the industry.
