Results as at 30 June 2010 Cairo, Egypt /
August 30, 2010, 10:15 AM
OCI Generates Double-Digit Growth in EBITDA and Net Income during the
Second Quarter 2010
Summary of Consolidated Results for Q2 2010(1):
. Consolidated revenues increased 36.2% to US$ 1,341.8 million (EGP
7,463.5 million) versus US$ 985.5 million (EGP 5,400.1 million) in Q1
2010 and 23.0% versus US$ 1,091.0million (EGP 6,101.5 million) in Q2
2009
. EBITDA increased 15.3% to US$ 269.4 million (EGP 1,499.2 million)
versus US$ 233.7 million (EGP 1,280.8 million) in Q1 2010 and 43.9%
versus US$ 187.2 million(EGP 1,045.8 million) in Q2 2009
. Consolidated EBITDA margin of 20.1% and Construction Group EBITDA
margin of 14.5% during Q2 2010
. Net income increased 23.5% to US$ 144.0 million (EGP 801.1
million) versus US$ 116.6 million (EGP 639.2 million) in Q1 2010 and
40.8% versus US$ 102.3 million (EGP 572.7 million) in Q2 2009
. Interim cash dividend of US$ 1.00 per share to be paid out in
September
Summary of Consolidated Results for H1 2010 Ended 30 June 2010:
. Consolidated revenues grew 21.3% to US$ 2,327.1 million (EGP 12,863.6
million) versus US$ 1,918.8 million (EGP 10,731.1 million) in H1 2009
. EBITDA increased by 38.5% to US$ 502.9 million (EGP 2,780.1 million)
versus US$ 363.2 million (EGP 2,030.7 million) in H1 2009
. Consolidated EBITDA margin of 21.6% and Construction Group margin of
15.5% during H1 2010
. Net income increased by 25.3% to US$ 260.6 million (EGP 1,440.3
million) versus 208.0 million (EGP 1,164.4 million) in H1 2009
Consolidated Construction Group Backlog
. Consolidated backlog as at 30 June 2010 stood at US$ 6.3 billion
reflecting a decline of 3.4% over the backlog as at 31 March 2010
impacted by a weaker Euro. On a currency constant basis, the backlog
would have been flat
. New awards totaled US$ 0.67 billion during the quarter and US$
1.47 billion for the first half of the year with infrastructure work
comprising 72.6% of total new awards
. Infrastructure work constitutes 63.9% of the Construction Group
backlog as at 30 June 2010
(1) Consolidated financial figures presented in this press release are
unaudited
Statement from the Chairman and Chief Executive Officer - Nassef
Sawiris
Second Quarter Results
OCI reported solid second quarter results. During the second quarter,
our consolidated EBITDA and net income grew 43.9% and 40.8%
respectively over the same period last year and 15.3% and 23.5% over
the first quarter 2010. During the quarter, the Fertilizer Group
finalized the acquisition of Royal DSM N.V's Agro and Melamine
businesses and the Group's second quarter results reflect full
consolidation from these assets. The assets have been rebranded to OCI
Agro and OCI Melamine and are collectively referred to as OCI
Nitrogen.The Fertilizer Group (across its various brands) sold
approximately 760 thousand tons of nitrogen-based fertilizers. While
Egyptian Fertilizer Company (EFC) reported weaker results as a result of
softer urea prices, OCI Nitrogen capitalized on the strong pricing
environment for nitrate-based fertilizers offsetting the impact of urea
prices. However, urea prices witnessed a 30% rebound starting July and we
continue to be positive that fundamentals for fertilizer demand will
remain robust. The Group also witnessed improved results from Gavilon
during the quarter.
We are pleased to report that the integration of OCI Nitrogen into the
Fertilizer Group is proceeding as planned. EFC has already successfully
completed several urea shipments through OCI Nitrogen's sales and
distribution networks to key European markets such as France, Germany,
the Netherlands and the UK. The Group will continue to capitalize on
further synergies and expects to market a significant volume of
products produced at its North African assets to Europe through this
highly diversified distribution platform. Subsequent to the acquisition
of OCI Nitrogen, the Group announced the acquisition of MICRO Chemie
B.V which owns and operates ammonia storage tanks at the port of
Rotterdam in the Netherlands with a combined capacity of 30 thousand
tons. The terminal has a permit to receive up to 600 thousand tons of
ammonia per year and will facilitate future ammonia exports to Europe.
Construction of Sorfert Algeria continues to progress on-track with the
plant 94.2% complete as at the end of July and commissioning scheduled
for early 2011. OCI and Sonatrach continue to jointly make positive
progress with 62 Algerian technicians and engineers having completed
full technical training at the Group's plants in Egypt during the first
half of the year.
Our Construction Group secured US$ 678 million in new construction work
during the second quarter with new awards for the first half totaling
US$ 1.47 billion. We expect a better second half in terms of new orders
as demand for infrastructure remains strong in our core regional
markets. The Construction Group has several outstanding bids for
sizeable infrastructure projects across the region with outcomes
expected prior to year-end.
Further, the protracted ratification process of the newly passed
legislation for Public-Private-Partnerships (PPP) is finally completed
and we expect tendering of new infrastructure projects in Egypt to
accelerate during fourth quarter and early next year.
For additional information
contact: For additional information on OCI:
OCI Investor Relations
Department: www.orascomci.com
Omar Darwazah OCI stock symbols: OCIC.CA / ORCI EY /
Email: OCICqL / ORSD
omar.darwazah@orascomci.com
Orascom Construction Industries (OCI)
Erika Wakid Nile City Towers - South Tower
Email: 2005A Corniche El Nil
erika.wakid@orascomci.com Cairo, Egypt
Hassan Badrawi
Director
Tel: +202 2461 1036/0727/0917
Fax: +202 2461 9409
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The company news service from the London Stock Exchange
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