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.