Results as at 31 December 2010 Cairo, Egypt / March 8, 2011, 8:30 AM OCI Generates Double-Digit Growth in EBITDA and Net Income during 2010 Helped by Integration of Dutch Fertilizer Business Summary of Consolidated Results for FY 2010 Ended 31 December 2010: * Consolidated revenues grew 27.8% to US$ 4,896.0 million (EGP 27,558.7 million) versus US$ 3,829.0 million (EGP 21,312.8 million) in FY 2009 * EBITDA increased by 36.8% to US$ 1,086.6 million (EGP 6,117.4 million) versus US$ 794.4 million (EGP 4,421.2 million) in FY 2009 * Consolidated EBITDA margin of 22.2% and Construction Group margin of 15.8% during FY 2010 * Net income increased by 36.9% to US$ 594.2 million (EGP 3,344.5 million) versus 434.1 million (EGP 2,416.5 million) in FY 2009 Summary of Consolidated Results for Q4 2010: * Consolidated revenues increased 34.9% to US$ 1,319.4 million (EGP 7,580.8 million) versus US$ 977.8 million (EGP 5,387.1 million) in Q4 2009 * EBITDA increased 39.4% to US$ 317.8 million (EGP 1,822.5 million) versus US$ 228.0 million (EGP 1,258.0 million) in Q4 2009 * Consolidated EBITDA margin of 24.1% and Construction Group EBITDA margin of 16.3% during Q4 2010 * Net income increased 76.1% to US$ 186.0 million (EGP 1,064.5 million) versus US$ 105.6 million (EGP 581.8 million) in Q4 2009 * Maintain interim cash dividend of US$ 1.00 per share to be paid out early April Consolidated Construction Group Backlog * New awards totaled US$ 0.55 billion during the quarter and US$ 2.62 billion for the full yearwithinfrastructure work comprising 62.6% of total new awards during the year * Infrastructure work constitutes 58.6% of the Construction Group backlog as at 31 December 2010 Statement from the Chairman and Chief Executive Officer - Nassef Sawiris Fourth Quarter Results OCI reported a stellar fourth quarter and solid full year results. During the fourth quarter, our consolidated EBITDA and net income grew 39.4% and 76.1% respectively over the same period last year and 19.5% and 26.1% respectively over the third quarter. During the year, EBITDA and Net Income grew 36.8% and 36.9% respectively over the full year 2009. The Fertilizer Group sold over 1.0 million tons of nitrogen-based fertilizers during the quarter and approximately 3.7 million tons during the year. Our investment in Gavilon performed very well and our results have recorded an investment income of US$ 14.1 million during the fourth quarter and US$ 43.4 million for the year. During the quarter, farmer economics improved dramatically helping lift netback urea, ammonia and calcium ammonium nitrate (CAN) prices 22.5%, 20.8% and 34.6% respectively which in turn yielded better returns for the Fertilizer Group. Ammonia volumes had been strategically held back from September to October in anticipation of these price increases and as a result ammonia sales volumes increased 23.9% over the previous quarter. We expect fertilizer prices to remain healthy during 2011 with prices fluctuating based on regular seasonal variations in demand. Industry fundamentals and farmer economics remain robust supported by historic all-time highs in prices of wheat and corn. In addition, massive global supply shocks to wheat in 2010 have helped push prices higher and depleted inventory levels. Russia and the Ukraine continue to see their domestic demand for nitrogen-based fertilizers strengthen. In addition, rising coal prices in China have pushed Chinese production cash costs higher which have raises the floor for globally traded urea. During the year, the global melamine market showed signs of strength with demand increasing 27.0% compared to 2009 and prices during the year remaining firm. The expansion of our CAN line in the Netherlands is on track with 300,000 tons of additional capacity expected to be completed during 2012. Construction of Sorfert Algeria continues to progress on-track with the plant 96.0% complete as at the end of January. Select utility commissioning has already commenced and the plant is expected to start commercial production in the fourth quarter of 2011. Our partner Sonatrach is being very supportive in ensuring that the final completion and commissioning of the plant proceed on target. The Construction Group generated robust EBITDA margins of 15.8% and 16.3% during the year and fourth quarter respectively. The Group secured US$ 0.55 billion in new construction work during the quarter with new awards totaling US$ 2.62 billion for the year. The Group continues to progress on various contract negotiations and has been awarded approximately US$ 50 million of awards in Egypt during the month of February alone. Prospects for construction awards continues to be positive with the Group submitting bids for several large infrastructure and road projects in the coming few weeks. Despite disruptions due to political unrest in Egypt, our fertilizer production facilities continued to produce at normal operating rates. The Construction Group lost 6 days of construction site activity during the month but work sites resumed activity immediately thereafter. We would also like to announce that the company has created two new senior positions: Mr. Osama Bishai has been appointed Chief Operating Officer for the Construction Group. Mr. Bishai has 26 years of experience with OCI. Mr. Renso Zwiers has been appointed Chief Operating Officer for the Fertilizer Group. Mr. Zwiers has over 20 years of fertilizer industry experience and joined OCI last year with the acquisition of Royal DSM N.V's Agro and Melamine businesses - renamed OCI Nitrogen. For additional information contact: For additional information on OCI: OCI Investor Relations Department: www.orascomci.com Omar Darwazah OCI stock symbols: OCIC.CA / ORCI Email:omar.darwazah@orascomci.com EY /OCICqL / ORSD / ORSCY Erika Wakid Orascom Construction Industries Email:erika.wakid@orascomci.com (OCI) Nile City Towers - South Tower 2005A Corniche El Nil Cairo, Egypt Hassan Badrawi Director Tel: +202 2461 1036/0727/0917 Fax: +202 2461 9409 This information is provided by RNS The company news service from the London Stock Exchange END
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