Orascom Construction, which is controlled by the Sawiris family, witnessed a substantial year-on-year (YoY) surge in its net income attributable to shareholders for Q2 2023, reaching $61.8 million. This increase was propelled by divestment gains and favorable foreign currency fluctuations.
Excluding these exceptional items, the net income for the quarter settled at $20.8 million, surpassing the mean analysts’ estimate of $16 million, as calculated by data provider Refinitiv.
During the period, consolidated revenue amounted to $758.6 million, marking a 19-percent year-on-year decrease.
Orascom, listed on Nasdaq Dubai, explained in a statement on Wednesday that the majority of this revenue originated from its operations in the Middle East and Africa.
The boosted net income in Q2 2023 stemmed from the divestment of two building material subsidiaries and foreign exchange gains, attributable to the advantageous currency net asset position in Egypt, according to the company.
In the same quarter, the net income generated from its 50-percent stake in BESIX experienced a significant YoY increase of 44.4 percent, reaching $6.5 million. Additionally, Orascom received a dividend of 10 million EUR ($10.9 million) from BESIX during the quarter.
As of June 30, 2023, the company maintained a net cash position of $163 million. The net profit for the first half of 2023 amounted to $98.7 million.
Orascom Construction Plc is a leading global engineering and construction contractor primarily focused on infrastructure, industrial and high-end commercial projects in the Middle East, Africa, and the United States.
Orascom Construction also develops and invests in concessions, owns 50 percent of BESIX Group, and holds a building materials, facility management and equipment services portfolio.
The group has consistently ranked among the world’s top contractors and is dual listed in the UAE and Egypt.
