Devaluation leads Orascom Development Egypt to $21mln loss in Q1-24

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Orascom Development Egypt (ODE) turned to a consolidated net loss of EGP 984.50 million in the first quarter (Q1) of 2024, versus a net profit of EGP 384 million in the corresponding quarter in 2023.

Revenues leapt to EGP 4.17 billion in Q1-24 from EGP 2.95 billion in Q1-23, according to a press release.

The company ascribed shifting to losses to the devaluation of the Egyptian pound, which resulted in it incurring a foreign exchange loss of EGP 2.40 billion during the reported period.

ODE logged a basic loss per share of EGP 1.05 in Q1-24, compared to earnings per share (EPS) of EGP 0.26 in the comparative period last year.

During the three-month period that ended on 31 March 2024, the company’s real estate revenues amounted to EGP 2.83 billion, up from EGP 2.01 billion in the equivalent period in 2023.

Hotel revenues increased to EGP 698.80 million in Q1-24 from EGP 573.20 million in Q1-23.

It is worth noting that Orascom Development Egypt’s profit soared by 63.50% YoY to EGP 3.10 billion in 2023.