Orascom Construction has reported consolidated backlog increase of 8.8% year-over-year (y-o-y) to $5.9bn, while its pro forma backlog including 50% share in BESIX Group increased 6.0% y-o-y to $8.4bn as of 30 June 2021.
Consolidated new awards increased 36.2% y-o-y to $1.8bn and pro forma new awards including 50% share in BESIX increased 35.9% y-o-y to $2.6bn in the first half (H1) of 2021.
Moreover, BESIX reported a standalone backlog of €4.2bn and new awards of €1.4bn in H1 2021.
Osama Bishai, CEO of Orascom Construction, said that the healthy level is reflecting the company’s previous indications regarding our ability to capitalize on its project pipeline. New projects this quarter were led mainly by a pick-up in the US, especially in the data center sector, and included work across the water and industrial sectors in Egypt where we continue to reinforce our leadership in such market segments. In addition, Egypt continues to provide us with an interesting pipeline of new opportunities that we expect to materialize during H2 of 2021.
Beshai comments that revenue, EBITDA, and net income recovered in the second quarter (Q2) of 2021, reversing a slower Q1 and resulting in a steady overall financial performance in H1 2021. We also generated positive operating cash flow in Q2 2021, but not enough to compensate for Q1 2021. That said, we are on the right trajectory and are working diligently to conclude the year on a positive note. On the operational front, we are progressing across the board and expect to witness the completion of major projects in H2 2021 particularly in the water sector.
Complementing our core EPC business, our portfolio of subsidiaries and investments in building materials, facilities management and infrastructure assets recorded another strong quarter, accounting for 22% of total net income in H1 2021.
Bishai added that we are focused on growing this part of our business, which should continue to benefit from sustained demand for building materials coupled with our efforts to pursue new investments that provide us with recurring income.
BESIX management continues to focus on turning around the business. We expect such efforts along with strong fundamentals including its competitive advantage, track record and seasoned team to drive BESIX along a profitable path for the remainder of the year.
We remain vigilant towards the persistent risks related to the pandemic, and continue to follow our strict health and safety protocols that have been instrumental in maintaining our solid progress at our project and office sites.
Orascom reports recovery in Q2 2021 resulting in steady evolution of revenue and EBITDA y-o-y in H1 2021
Revenue increased 4.1% y-o-y to $1,685.0m and consolidated EBITDA increased 1.1% to $100.4m in H1 2021.
Net income attributable to shareholders reached $23.8m in Q2 2021 and $47.7m in H1 2021.
Net cash position stable at $151.3m as of 30 June 2021 and positive operating cash flow of $31.8m in Q2 2021.