By Rob Corder
Orascom Construction Industries posts almost 50% revenue growth in first quarter.
Orascom Construction Industries (OCI) has landed new contracts worth almost $1 billion during the first quarter of 2007.
The new deals contributed to a record start to the year for the company. Consolidated revenue grew 46% to $835.6 million. Net income increased 54% to $140.3 million.The company's cement group was the best performer, with 55% growth, while its construction business posted 22% growth.
"Orascom Construction Industries (OCI) has witnessed another exceptional start to the year, driven by strong markets for both our cement products and construction services." said Nassef Sawiris, Chief Executive Officer for OCI.
"In recent months, our Cement Group announced green field projects in Saudi Arabia and Syria, strengthening OCI's presence in two new high growth emerging markets," he added.
Egypt remained the bedrock of OCI's business.
During the first quarter, the company's Construction Group was awarded new contracts worth approximately a billion dollars including $180 million for work on the first phase of the third Cairo Metro expansion project and $133 million for the construction of the El-Tebbin thermal power plant in Egypt.
"[These wins] emphasise our core competence in the transportation and power sectors. We continue to benefit from fast growth in opportunities in the region yet remain selective of our projects and clients," stated Sawiris.
"For the year ahead," continued Sawaris, "we aim to continue investing our free cash flow in new green field investments, select acquisitions and the build-up of our ready-mix and aggregates business. Our focus continues to be the delivery of the highest returns possible to our shareholders."