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Orascom Construction backlog rises to $7.2bn in Q2

Orascom Construction backlog rises to $7.2bn in Q2
Photo Credit: Arabianeye-Reuters
Orascom Construction
OC
0.19% 5.40 0.01

 

Cairo – Mubasher: Orascom Construction (OC) reported robust backlog growth to $7.19 billion by the end of the second quarter of 2015, a rise of 51% year-on-year, while new awards surged 65% year-on-year to $2.56 billion. Backlog was mainly driven by “the addition of high quality contracts across Egypt, Saudi Arabia and USA”.

The company saw an improvement in operational performance, resulting in revenue of $1.016 billion and an EBITDA margin of 6.2% in Q2-15, according to bourse filings with the Egyptian Stock Exchange (EGX) and Nasdaq Dubai.

OC signed new contracts during Q2 in Egypt’s transportation sector, including airports, roads and bridges. Moreover, OC signed a EUR 1.6 billion-deal to build two combined cycle power plants in Egypt with a total capacity of 9,600 MW, the company said in its statement, adding that the two power plants will be constructed through a consortium with Siemens and “will be the largest in the world once complete.”

The company has arranged a competitive financing package for the full value of its contracts on behalf of the Egyptian Electricity Holding Company from both local and international banks with Export Credit Agency coverage, according to the filing.

OC also secured new work in Saudi Arabia and is pursuing more opportunities both independently and through the joint venture (JV) with Saudi Binladin Group, OC revealed, adding that its JV signed with the Saudi group amounts to $125 million and will see the company execute a civil infrastructure package at a 64,000 square-meter mixed-use development during the Q2.

The construction firm is actively pursuing new opportunities in its other target MENA markets, including Algeria and Iraq.

OC’s CEO Osama Bishai noted that his company has sustained growth and a strong market position during the first half of the year, enabling it to surpass the $7 billion mark for backlog for the first time in the company’s history.

“Our new awards in Egypt bolstered our leadership position in the power generation sector as we signed a mega deal to construct two power plants that will be the largest in the world once complete, while our Saudi business also added substantial civil infrastructure work,” Bishai stated.

In addition, OC delivered West Damietta and Assiut power plants to the Egyptian government “not only in record timing, but also ahead of schedule,” Bishai revealed, adding that OC has made notable significant towards adding another infrastructure investment to its portfolio.

“We have already received a letter of award for the Abu Rawash Wastewater Treatment Plant concession in Giza, Egypt. This project will carried be out as a public private partnership (PPP) and marks the second PPP investment for OC,” the CEO revealed.