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Abu Dhabi, UAEThursday 19 July 2018

Egypt's Orascom Construction adds $650m in contracts in 2Q 

New awards include $415m in Egypt and $235m in US projects 

Orascom Construction added $650m worth of contracts to its backlog in 2Q of 2018. Dana Smillie / The National
Orascom Construction added $650m worth of contracts to its backlog in 2Q of 2018. Dana Smillie / The National

Egyptian contractor Orascom Construction added $650 million (Dh2.38 billion) in contracts to its backlog in the second quarter of 2018, as construction activity picks up pace in its home market.

The builder won $415m in awarded contracts in Egypt across sectors including transportation, water and new urban developments, the Nasdaq Dubai-listed firm said in an emailed statement.

"The group maintains its strategy of pursuing high-quality projects from both commercial and technical standpoints across its key markets."

Last month, embattled private equity firm Abraaj Group said it sold its entire holding in Orascom Construction as the Dubai-based buyout firm embarked on a restructuring amid allegations of misuse of funds. Abraaj off-loaded its 5.4 per cent stake in Orascom Construction for $52m, Orascom said in a bourse filing at the time.

The contracting firm won $235m worth of contracts in the second quarter in the US, an "uptick" in activity from the previous quarter, it said without quantifying the increase. The projects are in the commercial, infrastructure and industrial sectors, which include work on the maintenance facility at Phoenix Sky Harbor International Airport in Arizona.

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In the first quarter of 2018, the company posted a net profit of $31.9m, a 13.9 per cent year-on-year increase. Its first quarter revenue was $756.8m, 29 per cent lower than the same period a year ago.

Earlier this month, the company said it will pay an approved $30m dividend to its shareholders during the week staring July 30.

In the Mena region, where the company won a contract for the Fujairah International Airport expansion, Orascom Construction is pursuing new infrastructure, industrial and commercial opportunities in the region's markets, it said in its firs-quarter financial results statement in May.