CAIRO: Orascom Construction Industries (OCI) first-half net profit rose 53 percent on last year to LE 1.2 billion ($210 million), the firm said. The construction and building materials group reported in a statement that earnings before interest, tax, depreciation and amortization (EBITDA) of LE 2.03 billion, 55 percent up on last year. Two analysts said the figures were in line with expectations. One analyst said high cement prices and higher margins on construction work had boosted profits. High oil prices have contributed to a construction boom in the region.
*By 11:15 GMT, OCI shares traded 1.3 percent down at LE 235.90. A trader said the positive results had already been priced into the stock, which had risen in recent days on expectations of good figures The results were very good. They have outstanding results for the first time in years … Margins are higher on cement and construction, CIBC brokerage s Rasha El-Husseiny said. OCI Chief Executive Officer Nassef Sawiris predicted increased cement output to boost growth further. He said OCI s cement group aims to increase production capacity by 10 million tons to 31 million tons in the next 15 months. Our financial results will be even stronger during the second half of the year, benefiting from the successful start-up of our new cement capacity in Pakistan, northern Iraq and Egypt during July, Sawiris said. Egypt s trade ministry last week agreed with cement producers to cap domestic cement prices, after market consolidation in the industry led to accusations of anti-competitive price practices. But Husseiny said the price cap was unlikely to hit OCI s cement operations as the limit came into force in the summer, when prices are traditionally higher. She said the capped price was a better reflection of year-round prices. By 10:10 GMT, OCI shares traded 1.7 percent down at LE 234.99. Reuters
