Orascom Construction reports first quarter profit

22 May 2024
Backlog excluding Besix has increased 33.1% year-on-year to $7.3bn

Orascom Construction has reported revenue of $766.3m, adjusted earnings before interest, tax, depreciation and amortisation (Ebitda) of $37.8m, and net income attributable to shareholders of $46.1m for Q1 2024.

The company's consolidated backlog, excluding its stake in Besix, saw a robust 33.1% year-on-year increase to reach $7.3bn as of March 31, 2024. Despite a 29% decrease in consolidated new awards to $609.5m in Q1 2024, Orascom Construction's financial performance remained strong.

In MEA, the company secured new awards totalling $359m during the first quarter of 2024, with a focus on projects in the marine and transportation sectors. This includes a new container terminal that Orascom Construction will construct in East Port Said.

In the US, Orascom Construction's subsidiaries achieved new awards amounting to #250.5m in Q1 2024, primarily in including student housing, commercial, and light industrial.

Besix Group reported a standalone backlog of €4.8bn and new awards of €530.6m in Q1 2024. The consolidated revenue decreased by 4.8% year-on-year to $766.3m in Q1 2024. Besix's standalone backlog decreased by 15.2% year-on-year to €4.8 billion as of 31 March 2024. Additionally, Besix reported a net income contribution of $0.5m in Q1 2024 compared to negative $0.1m in Q1 2023.

The company's US backlog increased by 19.2% year-on-year to $1.6bn, reflecting its expansion across various sectors.

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