$670mn added to its backlog in Q3 2022 says Orascom Construction

The firm said that its US subsidiaries accounted for 30% of the business during the quarter

$670mn worth of new contract awards were added to Orascom Construction’s backlog in Q3 2022, the firm has reported. The Cairo-based firm said that the new contracts brings its total awards in the nine months of 2022 to $3.1bn.

According to the construction major, projects in the Middle East comprised 70% of new awards during Q3 2022, mainly across the infrastructure, logistics and commercial sectors. The firm previously entered into a JV with Arab Contractors to build the country’s first monorail.

New awards signed by the firm’s US subsidiaries accounted for 30% of total during the quarter; the firm noted that projects in the data centre sector accounted for a significant portion of new awards, and said the performance demonstrated its successful efforts to expand across the fast growing sector. It added that its estimated consolidated backlog stood at $6.1bn as of 30 September 2022.

The New Delta Treatment Plant which is being developed by a JV comprising Metito, Orascom, Arab Contractors and Hassan Allam was shortlisted at the 2021 Big Project Middle East Awards in the Sustainable Project of the Year category.

The construction company explained that, in September this year, it signed an agreement with the Internal Trade Development Authority (ITDA) to build, own and operate a strategic warehouse in the Fayoum Governorate of Egypt.

The project is said to be the first phase of a larger program that will play an important role in providing modern logistics and warehousing of important commodities across Egypt. The project is set to leverage state-of-the-art technology and efficient operational methods to meet existing and future needs for these commodities, Orascom explained.

Construction is expected to start once financing is concluded and to take up to 15 months, after which operation of the warehouse will commence.

In July 2022, it was announced that the evaluation of prequalification bids for the $2bn Bahrain Metro project were underway; Orascom was said to have expressed interest in the project.

Discussing its financial performance in H1 2022, the firm said that revenue increased 13.6% y-o-y to $1.91bn and consolidated EBITDA decreased 7.4% y-o y to $92.9mn. It also said that it saw net income attributable to shareholders of $20.8mn in Q2 2022, and $33.9mn in H1 2022.

Leave a comment