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Orsacom posts 82pc Q1 earnings growth

CAIRO — Orascom Construction Industries (OCI) has announced consolidated revenue of LE 2,440.0 million with earnings before interest, tax, depreciation and amortisation (EBITDA) of LE 621.4 million and net income of LE 340.5 million for the first quarter ended 31 March 05. The consolidated results included a LE 25.5 million loss on foreign exchange.

Last year, OCI had consoldiated revenue of LE 1,241.3 million with an EBITDA of LE 439.1 million and net income of LE 186.8 million. Consolidated results included a LE 10.3 million gain on foreign exchange. OCI Chief Executive Officer, Nassef Sawiris, said "Revenue from Cement Group reached LE 599 million, up 14 per cent over last year. De-bottlenecking of our cement plants in Egypt and Algeria has progressed rapidly and initial test runs in Egypt indicate that our annual cement production capacity will reach 8.5 million tons. Revenue from our Construction Group reached LE 2 billion, up 118 per cent over last year.

"The performance of all our construction businesses has been impressive. Construction activity in all our regional markets continues to expand and a wide array of new industrial, infrastructure and commercial projects have been recently announced. Although our consolidated backlog grew 4 per cent from December to LE 11.4 billion, we have sufficient capacity to take on new projects and are well positioned to deliver high value for money solutions to our customers."

Sawiris added "We have reorganized our financial reporting this quarter to reflect the increased importance of our cement operations to our overall financial performance. We are extremely proud of our Cement Projects Team, which continues to find new opportunities and oversee the construction of new plants at a world record pace. Through development of new Greenfield projects and selective acquisitions, we intend to strengthen our position as the leading cement producer active in emerging markets."