Egypt-based Orascom Construction reported a 6.2 per cent drop in third quarter net profit as the number of new contracts declined amid a global economic recession-induced by the Covid-19 pandemic.
Net profit attributable to shareholders for the three months to the end of September fell to $30.2 million, the company said in a statement on Thursday. However, quarterly revenue increased 4.4 per cent to $824.5m from the same period in 2019.
New contract awards during the reporting period almost halved to $674.4m from a year-earlier. The company's net cash position reached $208.9m at the end of September.
“Our focus on project execution and controls, cash preservation and collections, and cost optimisation are reflected in our financial results for the quarter,” Orascom chief executive Osama Bishai, said.
The quarterly revenue increase, he said, indicated continued operations of the firm “on a full-fledged basis”.
Earnings before interest, taxes, depreciation and amortisation (Ebitda) rebounded in the third quarter, surging 44.9 per cent from the previous quarter to $51m.
The rise in Ebitda reflects “successful efforts in project controls and cost optimisation,” Mr Bishai said.
The Cairo-based company is an engineering and construction contractor primarily focused on infrastructure, industrial and high-end commercial projects in the Middle East, Africa and the US.
Net profit in the first nine months of the year fell nearly 31 per cent to $65m from the same period a year earlier. Revenue in the first nine months rose 6.9 per cent to $2.44 billion on an annual basis.
The company's backlog remained steady at $5.3bn at the end of September. New awards during the nine-month period, however, declined 27.5 per cent to $2bn.
The group signed $1.4bn worth of new awards in the first nine months, primarily in Egypt, of which $480m were added in the third quarter of the year.
Main projects won during the first half were for transportation, data centres, water and commercial sectors. New work picked up in the third quarter includes contracts in Egypt’s growing logistics sector, the country’s New Administrative Capital and Al Alamein city.
In the US, the company’s subsidiaries signed $570m worth of contracts during the nine-month period. Data centre projects in the US account for a significant portion of new awards in the third quarter, it said.
The standalone backlog of Besix, in which Orascom Construction controls a 50 per cent stake, fell 7.1 per cent year-on-year to €4.2bn. New awards totalled €407m in the third quarter, bringing the total in the first nine months to €1.5bn for BESIX, according to the statement.
The National photo project
Chris Whiteoak, a photographer at The National, spent months taking some of Jacqui Allan's props around the UAE, positioning them perfectly in front of some of the country's most recognisable landmarks. He placed a pirate on Kite Beach, in front of the Burj Al Arab, the Cheshire Cat from Alice in Wonderland at the Burj Khalifa, and brought one of Allan's snails (Freddie, which represents her grandfather) to the Dubai Frame. In Abu Dhabi, a dinosaur went to Al Ain's Jebel Hafeet. And a flamingo was taken all the way to the Hatta Mountains. This special project suitably brings to life the quirky nature of Allan's prop shop (and Allan herself!).
Read more from Aya Iskandarani
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Dr Graham's three goals
Short term
Establish logistics and systems needed to globally deploy vaccines
Intermediate term
Build biomedical workforces in low- and middle-income nations
Long term
A prototype pathogen approach for pandemic preparedness
Series result
1st ODI Zimbabwe won by 6 wickets
2nd ODI Sri Lanka won by 7 wickets
3rd ODI Sri Lanka won by 8 wickets
4th ODI Zimbabwe won by 4 wickets
5th ODI Zimbabwe won by 3 wickets
Day 1, Dubai Test: At a glance
Moment of the day Sadeera Samarawickrama set pulses racing with his strokeplay on his introduction to Test cricket. It reached a feverish peak when he stepped down the wicket and launched Yasir Shah, who many regard as the world’s leading spinner, back over his head for six. No matter that he was out soon after: it felt as though the future had arrived.
Stat of the day - 5 The last time Sri Lanka played a Test in Dubai – they won here in 2013 – they had four players in their XI who were known as wicketkeepers. This time they have gone one better. Each of Dinesh Chandimal, Kaushal Silva, Samarawickrama, Kusal Mendis, and Niroshan Dickwella – the nominated gloveman here – can keep wicket.
The verdict Sri Lanka want to make history by becoming the first team to beat Pakistan in a full Test series in the UAE. They could not have made a better start, first by winning the toss, then by scoring freely on an easy-paced pitch. The fact Yasir Shah found some turn on Day 1, too, will have interested their own spin bowlers.
Business Insights
- As per the document, there are six filing options, including choosing to report on a realisation basis and transitional rules for pre-tax period gains or losses.
- SMEs with revenue below Dh3 million per annum can opt for transitional relief until 2026, treating them as having no taxable income.
- Larger entities have specific provisions for asset and liability movements, business restructuring, and handling foreign permanent establishments.
'The Woman in the House Across the Street from the Girl in the Window'
Director:Michael Lehmann
Stars:Kristen Bell
Rating: 1/5
Muslim Council of Elders condemns terrorism on religious sites
The Muslim Council of Elders has strongly condemned the criminal attacks on religious sites in Britain.
It firmly rejected “acts of terrorism, which constitute a flagrant violation of the sanctity of houses of worship”.
“Attacking places of worship is a form of terrorism and extremism that threatens peace and stability within societies,” it said.
The council also warned against the rise of hate speech, racism, extremism and Islamophobia. It urged the international community to join efforts to promote tolerance and peaceful coexistence.
The specs
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Transmission: 8-speed auto
Power: 295bhp
Torque: 353Nm
Price: Dh155,000
On sale: now
THE SPECS
Jaguar F-Pace SVR
Engine: 5-litre supercharged V8
Transmission: 8-speed automatic
Power: 542bhp
Torque: 680Nm
Price: Dh465,071
