Cairo -- (MARKET WIRE) -- November 14, 2006 --
NEWS RELEASE
OCI Reports Record Revenue, EBITDA & Earnings
OCI posts 84% growth in consolidated EBITDA and 66% rise in net income
during the third quarter 2006
Cairo, Egypt - 13 November 2006: Orascom Construction Industries
announced consolidated revenue of EGP 11,942.1 million (US$ 2,076.0
million) with earnings before interest, tax, depreciation and
amortization (EBITDA) of EGP 3,374.5 million (US$ 586.6 million) and net
income of EGP 2,015.3 million (US$ 350.3 million) for the nine months
ended 30 September 2006.
During the same period last year, OCI reported consolidated revenue of EGP
8,270.3 million (US$ 1,416.1 million) with EBITDA of EGP 2,027.8 million
(US$ 347.2 million) and net income of EGP 1,274.5 million (US$ 218.2
million).
OCI also reported record consolidated revenue of EGP 4,952.6 million (US$
860.9 million) with EBITDA of EGP 1,331.5 million (US$ 231.5 million) and
net income of EGP 806.7 million (US$ 140.2 million) for the third quarter
ended 30 September 2006.
During the same quarter last year, OCI reported consolidated revenue of
EGP 2,905.3 million (US$ 497.5 million) with EBITDA of EGP 722.3 million
(US$ 123.7 million) and net income of EGP 484.9 million (US$ 83.0
million).
In the quarterly message to shareholders, OCI Chief Executive Officer
Nassef Sawiris commented:
"This third quarter reflects the impact of OCI's enlarged portfolio of
cement capacity. During the quarter, consolidated revenue grew 71%,
EBITDA also rose an impressive 84% and net income increased 66%. For the
nine months ended September 06, OCI showed revenue growth of 44%, EBITDA
growth of 66% and a rise in net income of 58%.
The OCI Cement Group reported 59% growth in EBITDA on the back of volume
increases and positive market conditions. Following the successful start-
up of our new cement capacity in Egypt, Northern Iraq and Pakistan during
July, the Cement Group management focused its attention on stabilizing
the new production equipment to reach optimal operational levels. The
third quarter did not reflect the full impact of these new capacities.
Our Cement Group capacity has grown 40% this year to reach 21 million
tons. During the next 10 months we expect to add 10 million tons of new
cement capacity to reach 31 million tons. We have continued to pursue a
strategy of vertical integration into markets which suffer from
structural supply deficits in cement. Our strategy has begun to
materialize with our announcement of the acquisition of a 50% stake in
Group GLA, the largest independent aggregates and ready-mix concrete
producer in Spain. Group GLA comes with a strong management team that has
a proven track record in addition to annual operational capacities in
aggregates of 5 million tons along with 240 million tons of reserves,
ready-mix concrete capacity of 3.5 million cubic meters and cement
milling capacity 0.6 million tons. Jointly with the Cementos La Parilla
clinker grinding plant north of Madrid, our previous Spanish acquisition,
the combined annual cement milling capacity reaches 1.8 million tons in
Spain. We will continue to investigate attractive greenfield
opportunities in emerging markets, potential expansions in core
subsidiaries and value-creating distribution investments in developed
markets.
The Construction Group added approximately a billion dollars of new work
during the quarter. The Group reported 37% growth in revenue with a
robust EBITDA margin of 14% which is consistent with previous quarters.
The strong growth continues to reflect a good regional construction
market with opportunities for performing contractors. We will continue to
maintain a policy of managed growth and focus on profitability.
Our ability to capitalize on new investment opportunities in both
emerging and key developed markets for our core businesses will be
bolstered by our attentiveness to a healthy balance which is achieved by
a focus on free cash flow and active debt management. Based on an
annualized EBITDA, net debt stands at 1.2x EBITDA."
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Orascom Construction Industries
Orascom Construction Industries (OCI) is a leading cement producer and
construction contractor active in emerging markets. As a cement
producer, we own and operate cement plants in Egypt, Algeria, Turkey,
northern Iraq, Pakistan and Spain which have a combined annual production
capacity of 21 million tons. Our new investments in Northern Iraq,
Turkey, Nigeria, Algeria, and the United Arab Emirates will increase our
annual production capacity to 34 million tons. As a contractor, we
provide engineering procurement and construction services on industrial,
commercial and infrastructure projects for private and public customers
principally in the Middle East, Africa and Central Asia. OCI also invests
in natural gas-based industries and infrastructure concessions.
For additional information on OCI: www.orascomci.com
Orascom Construction Industries (OCI)
Nile City Towers - South Tower
2005A Corniche El Nil, Cairo, Egypt
Tel: +202 461 1111, Fax: +202 461 9400,
OCI stock symbols: OCIC.CA / ORCI EY / OCICqL / ORSD LI
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