Markets Update: Orascom Construction Industries, Egypt's largest listed construction company, has seen a strong growth in profits.
Orascom Construction of Egypt builds strong profits
Orascom Construction Industries, Egypt's largest listed construction company, has seen a strong growth in profits in the third quarter, as rising fertiliser prices pushed up the bottom line.
Net profits increased by 24 per cent to US$182 compared to the same period last year, the company said in a statement posted on its website. Revenue grew by almost 9 per cent to $1.36 billion.
Orascom's fertiliser business drove up profits. The company ranks amongst the world's 10 largest produce of nitrogen-based fertilisers, and prices for its product increased by a quarter in just three months.
Orascom also saw the backlog in its construction business grow by almost 14 per cent between July and September this year. The Egyptian firm owns half of construction company BESIX Group. The Belgian builder has a significant presence in the UAE, where it has helped construct the Ferrari World theme park on Yas Island, and is currently completing the Cleveland Clinic in Abu Dhabi.
Shares in Orascom have declined by 23 per cent this year, compared to the 44 per cent fall in Egypt's benchmark EGX 30 Index.