Cairo – Mubasher: Pharos Research has reiterated their ‘Overweight’ recommendation on Orascom Construction Plc at a fair value (FV) of EGP 200 per share.

The international engineering and construction contractor has beaten Pharos’ 2018 estimates for net income of $102 million, according to a recent report.

The company has incurred losses from its operations in the USA, which contributed $30 million to attributable net income in the third quarter of this year, Pharos said.

The research firm noted that Orascom’s net income would have soared 163%, recording $59 million, excluding the USA operations net loss.

Orascom Construction, listed on the Egyptian Exchange (EGX) and Nasdaq Dubai, reported a 37% year-on-year increase in consolidated profit for Q3-18.

Net profits stood at $32.3 million during the three-month period ended September, versus $23.5 million in the year-ago period.

Revenue shrank to $728.8 million in Q3-18 from $805.4 million in the same period a year earlier.

In the first nine months of the year, the company logged $119.3 million in profits, versus $82.3 million for the corresponding period of 2017.