El Sewedey Electric signs new EPC contract worth EGP 475m

Alyaa Stohy
2 Min Read

El Sewedey Electric has announced that its subsidiary, El Sewedey Electric for Trading and Distribution, has signed a new engineering, procurement and construction (EPC) contract to build an electrical network.

The contract, worth EGP 475m on a turnkey basis, will be implemented over an eight month period to build a network covering 50,000 acres in east Oweinat.

El Sewedey Electric for Trading and Distribution is a pioneer in building 220KV & 500 KV transmission lines of over 1,000 km and 220KV & 500 KV substations within Egypt and Africa.

Pharos Research said that the company’s results for the first quarter (Q1) of 2020 did not include a negative impact from the coronavirus (COVID-19) pandemic.

Looking ahead, Pharos Research anticipates the impact to be fully felt in Q2 of 2020. Accordingly, the company is looking to trim is sales estimate by 29% and the GPM estimate to 11.1%. Additionally, the company expects the awards momentum to cool down in the second half (H2) of 2020.

The company is factoring in awards of $328m during the current fiscal year 2019/2020. Given the current market conditions, Pharos Research expects the company’s weak performance to weigh down on the stock price throughout FY 2019/2020.

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