Egypt’s Orascom Construction (OC) company sees a strong pipeline of projects in 2021 covering the country’s metro, railways, new roads and highways, water, and infrastructure.
This also includes Operations and Management (O&M) contracts in renewables, water desalination, water treatment, wastewater treatment, power, and facilities management
The company stressed its expertise in securing financing on behalf of the client for large scale projects, such as Egypt’s new Monorail network and water treatment plants .
OC is selectively looking at other countries, including focusing on Iraq in addition to some countries in Africa. This, however, would depend on financing and the type of projects that become available. They see more awards in data centres and commercial projects in the US.
It reported $25.9m in its bottom-line for the fourth quarter (Q4) of 2020, down 6.2% year-on-year (y-o-y), and 14.2% quarter-on-quarter (q-o-q).
The bottom-line came in lower than the company’s estimates of $38m, due to weaker margins during the quarter in both the Middle East and Africa (MEA) region, and the US. It was also affected by a lower positive contribution to the bottom line of $2.8m from BESIX than the prior quarter.
The company’s net cash position stood at $358.6m (EGP 48.4/share) at the end of December 2020, up from the $209m seen at the end of September 2020, owing to the favourable collection cyclicality in Q4 of 2020.