Dubai-listed builder says net income falls to $22.4m in quarter as US losses widen 47.6 per cent
Orascom Construction says third quarter net income slips 13.8 per cent, dragged down by US business
Orascom Construction, the Dubai-listed builder, said third quarter net income fell 13.8 per cent as losses from its operations in the US outweighed gains from those in the Middle East and North Africa that have become more profitable amid an increase in government infrastructure spending.
Net income attributable to shareholders dropped to $22.4 million in the three months ended September 30 compared to $26m in the corresponding period last year. Losses from the company's business in the US widened 47.6 per cent in the period to $38.2m from $25.9m from the same period a year earlier.
"In Egypt, we reinforced our role as a leading player in the development of Egypt's infrastructure and new cities as we signed several new projects including a wastewater treatment plant that will serve 6 million people and the landmark cultural center in the New Administrative Capital," said Osama Bishai, the company's chief executive officer.
Orascom signs $320m deal for wastewater treatment plant in Egypt
In the MENA region, the company saw a 21 per cent increase in net income to $44m in the third quarter from $36.4m in the corresponding period last year, boosted by new business in Egypt where the company has traditionally received a big part of its business.
The company said it added $800 million of new projects in both the Middle East and North Africa and the US during the third quarter. It didn't give a reason however for the widening loss from its US business during the third quarter.