Orascom Construction reports 26% profit decrease

Consolidated net profit reached $24.9mln in Q1 2020

  
An Orascom construction worker poses at Egypt's new administrative capital, approximately 45 km (30 miles) north of the current capital Cairo, Egypt October 18, 2017. Picture taken October 18, 2017.

An Orascom construction worker poses at Egypt's new administrative capital, approximately 45 km (30 miles) north of the current capital Cairo, Egypt October 18, 2017. Picture taken October 18, 2017.

REUTERS/Amr Abdallah Dalsh

ArabFinance: Orascom Construction (ORAS) posted a 26% Year on Year decrease in its consolidated net profit for Quarter 1 (Q1) of 2020, according to the company’s May 21st financial statements filed to the Egyptian Exchange.

Consolidated net profit reached $24.9 million (EGP 393.83 million) in Q1 2020, compared to $33.7 million (EGP 533.02 million) achieved in Q1 2019.

Nevertheless, it incurred a standalone net loss of $2 million (EGP 31.63 million) in Q1, compared to posting $1.8 million (EGP 28.47 million) in Q1 2019.

On May 20th, the company's general assembly approved cash dividends of $0.21 for 2019.

The company signed an agreement with Ora Developers to build the first phase of ZED Sheikh Zayed in Egypt.

Ora also signed a loan agreement worth EGP 1 billion with Banque Misr to finance the first phase of the project.

Orascom Construction, formerly known as Orascom Construction Ltd, is a UAE-based engineering and construction contractor. The company is primarily focused on infrastructure, industrial, and high-end commercial projects in US, the Middle East, Africa, and Central Asia for public and private clients.

At press time, the exchange rate is $1= EGP 15.82

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