Orascom Construction’s (OC) net income totalled $64m during the first nine month of 2015, compared to $24.5m in the same period in 2014, and it has a “healthy backlog” of $6.7bn, the company announced Monday.
The company’s backlog surged by 20% compared to the same period last year, where the deals amounted to $5.56bn.
Revenues during the first three quarters reached $3bn, in which Egypt and the US contributed with the largest shares to revenues with 89%.
New contracts were signed in Egypt and the US during the third quarter (Q3) of 2015, OC said. It highlighted that the values of contracts’ signed during Q3 2015 registered at $482.9m.
“OC signed new power and transportation work in Egypt during the third quarter as it continues to grow its infrastructure in existing and new regional markets,” OC said. “The Group has grown its power business significantly this year, accounting for approximately 30% of total backlog as of 30 September 2015”.
Saudi Arabia’s contribution to the backlog dropped to 10%, with OC targeting “selective strategic infrastructure work” in the market. The awards of Weitz and Contrack Watts, a company acquired by OC in December 2012, grew by 12% year on year (YoY) to record $1.2bn. Weitz’s backlog increased three and a half times since its acquisition.
The share of infrastructure deals in the backlog was 61%, while the industrial deals’ share was 21.7% and the rest was commercial deals with 17.3%.
“Orascom Construction will distribute a total cash dividend of USD 0.36 per share in 2016,” the company said. “The first payment of USD 0.18 per share will be made in Q1 2016 and the second in Q3 2016.”
Going forward, the group intends to distribute dividends on a bi-annual basis.
OC CEO Osama Bishai said they will “continue to focus on delivering further improved results from our current backlog while effectively managing our cash and financial resources”.
“We also remain consistent in targeting select projects as both a contractor and an investor in the region while emphasising our focus in the US to mimic our business model in the Middle East,” Bishai said.
