Egypt-based Orascom Construction reported a 4 per cent drop in its first-quarter profit as revenue plunged amid the Covid-19 pandemic.
Net profit attributable to owners of the company for the period ending March 31 declined to $23.9 million, the company said in a statement to Nasdaq Dubai, where its shares trade. Revenue during the period dropped 1.3 per cent to $816.6m.
“We are satisfied with our backlog level and the progress of our project pipeline,” Osama Bishai, chief executive of the company, said.
“New awards increased 11.2 per cent year-on-year to $666.4m in first quarter of 2021, demonstrating our successful efforts in signing a range of high-quality projects across the infrastructure, transportation and commercial sectors while maintaining our backlog at $5.4 billion as of March 31, 2021.”
The company is also “seeing an interesting pipeline of projects in the US and are confident in our new award levels there in second quarter of 2021”, Mr Bishai said.
Cairo-based Orascom is an engineering and construction contractor primarily focused on infrastructure, industrial and high-end commercial projects in the Middle East, Africa and the US.
Revenue in the company’s Middle East and Africa business grew 4.9 per cent to $580m, while revenue from its US operations slid 14 per cent to $236.6m.
The company signed $570m worth of new contracts in Egypt during the quarter. This includes a contract to build the Magdi Yacoub Global Heart Centre in Cairo and Emaar’s Vida Marina Hotel & Yacht Club at Marassi Beach on the north coast.
Orascom's US subsidiaries signed $96m of new contracts, mostly in the commercial and light industrial sectors and it expects to sign new contracts in the second quarter in the data centre sector.
Belgian contractor Besix, in which Orascom Construction controls a 50 per cent stake, reported a negative contribution in the first quarter, the company said.
“Backlog was maintained year-on-year at a healthy level of €4.7bn [$5.72bn] following a strong quarter of new awards," Mr Bishai, said. "This should provide a solid foundation for Besix’s recovery this year.”
Orascom, which has a dual listing on the Egyptian Exchange, approved a dividend of $27m to shareholders, marking the fourth consecutive year of dividend distribution.
Timeline
2012-2015
The company offers payments/bribes to win key contracts in the Middle East
May 2017
The UK SFO officially opens investigation into Petrofac’s use of agents, corruption, and potential bribery to secure contracts
September 2021
Petrofac pleads guilty to seven counts of failing to prevent bribery under the UK Bribery Act
October 2021
Court fines Petrofac £77 million for bribery. Former executive receives a two-year suspended sentence
December 2024
Petrofac enters into comprehensive restructuring to strengthen the financial position of the group
May 2025
The High Court of England and Wales approves the company’s restructuring plan
July 2025
The Court of Appeal issues a judgment challenging parts of the restructuring plan
August 2025
Petrofac issues a business update to execute the restructuring and confirms it will appeal the Court of Appeal decision
October 2025
Petrofac loses a major TenneT offshore wind contract worth €13 billion. Holding company files for administration in the UK. Petrofac delisted from the London Stock Exchange
November 2025
180 Petrofac employees laid off in the UAE
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