CAIRO, EGYPT--(Marketwire - Nov 21, 2011) -
Results as at 30 September 2011 Cairo, Egypt /November 21, 2011, 8:30 AM OCI Generates Double Digit Growth in EBITDA and Net Income during Q3 2011 and Reports Backlog Growth for Second Consecutive Quarter Summary of Consolidated Results for Q3 2011: * Consolidated revenues increased 8.9% to US$ 1,360.4 million (EGP 8,109.0 million) versus US$ 1,249.5 million (EGP 7,114.2 million) in Q3 2010 * EBITDA increased 39.6% to US$ 371.3 million (EGP 2,212.1 million) versus US$ 265.9 million (EGP 1,514.8 million) in Q3 2010 * Consolidated EBITDA margin of 27.3% and Construction Group EBITDA margin of 15.6% during Q3 2011 * Net income increased 24.0% to US$ 182.9 million (EGP 1,090.2 million) versus US$ 147.5 million (EGP 839.7 million) in Q3 2010 Summary of Consolidated Results for 9M 2011 Ended 30 September 2011: * Consolidated revenues grew 14.5% to US$ 4,095.4 million (EGP24,252.4 million) versus US$ 3,576.7 million (EGP 19,977.8 million) in 9M 2010 * EBITDA increased by 38.7% to US$ 1,066.6 million (EGP 6,316.1 million) versus US$ 768.9 million (EGP 4,294.9 million) in 9M 2010 * Consolidated EBITDA margin of 26.0% and Construction Group margin of 15.1% during 9M 2011 * Net income increased by 35.8% to US$ 554.4 million (EGP 3,281.9 million) versus US$ 408.2 million (EGP 2,280.0 million) in 9M 2010 Consolidated Construction Group Backlog * Consolidated backlog as at 30 September 2011 grew to US$ 5.95 billion reflecting an increase of 13.6% over the backlog as at 30 June 2011 * New awards totaled US$ 1.42 billion during the quarter and US$ 2.74 billion for the first nine months of the year * Infrastructure and industrial work constitute 67.9% of the Construction Group backlog as at 30 September 2011 Statement from the Chairman and Chief Executive Officer - Nassef Sawiris Third Quarter Results OCI continues to report strong results during 2011. During the first nine months, our consolidated EBITDA and net income grew 38.7% and 35.8% respectively over the same period last year. During the quarter, our consolidated EBITDA and net income rose 39.6% and 24.0% respectively over the same period last year and 2.9% and 10.7% over the previous quarter. The net income reported during the third quarter reflects the recent rise in tax rates in Egypt from 20% to 25%. During the third quarter, the Fertilizer Group sold approximately 1.15 million tons of nitrogen-based fertilizers totaling 3.47 million tons for the first nine months. The quarter witnessed robust commodities pricing which helped lift overall profitability for the Group. Average netbacks on urea sales witnessed the most pronounced increase with prices increasing north of 25% quarter-on-quarter. Backed by strong fundamentals on crops, especially on corn and wheat, nitrogen-based fertilizer prices have been stable with a favorable outlook. Fundamentals for nitrogen have been further supported by rising coal prices which are a key input for urea production in China. On the supply side, the Chinese government extended the export tariff on nitrogen-based fertilizer products in attempt to curb exports further and satiate local market demand. As a result, Chinese exports are down 62% during the first nine months compared to the same period last year. We expect China to continue to export fewer nitrogen-based fertilizer products for the next 12 months. In October, the Fertilizer Group announced a new state-of-the-art integrated nitrogen-based fertilizer Greenfield project in Brazil in joint venture with Rio-de-Janeiro-based EBX Group (EBX). The EBX Group is a leading Brazilian business group with core investments in mining, logistics, energy, oil and gas and offshore equipment and services. The fertilizer complex is expected to have up to 3 million tons of annual capacity producing a diversified portfolio of nitrogen-based fertilizers and is expected to have a total investment cost of approximately US$ 3 billion. The complex will be located in the Acu Superport in Brazilwhich is being developed by LLX, the logistics arm of EBX. Once commissioned, the project will constitute a milestone in the path of making Brazil a self-sufficient producer and consumer of nitrogen fertilizers thereby improving reliability and availability of strategic fertilizer supplies for the domestic farming industry. The Fertilizer Group continues to focus on organic initiatives and underway capacity additions in Egypt, Algeria, the Netherlands and the US. Once these initiatives are complete by the end of the first quarter of 2012, the Fertilizer Group would have increased total production capacity by approximately 60%. Sorfert Algeria is scheduled to start production within the coming 4-8 weeks and we expect to book our first shipment in February. Sorfert will add 1.2 million tons of urea and 0.8 million tons of ammonia annually. OCI Nitrogen is on track with the expansion of its CAN line which is expected to increase capacity by 300 thousand tons per annum or approximately 25%. The capacity increase will be complete during the first quarter of 2012. In addition, OCI Nitrogen is also on track to restart an idle 30 thousand ton melamine plant in Geleen. In addition, OCI Nitrogen is close to completing its debottlenecking initiative on its ammonium nitrate (AN) liquor capacity which will maximize production capacity of its urea ammonium nitrate (UAN) line. In the US, the OCI Fertilizer Group has signed an agreement to acquire minorities in Pandora Methanol LLC (Pandora) taking the Group's stake to 100% one week ahead of scheduled ammonia production. Pandora has been renamed to OCI North America and rehabilitation of the plant is on-track with ammonia commissioning currently underway. The methanol production lines are scheduled to start during the second quarter of 2012. OCI North America will add 250 thousand tons of ammonia and 750 thousand tons of methanol production capacities to the Group. The plant will supply product to adjacent customers through pipeline connections and will also nearby port access to ship both ammonia and methanol along the Gulf Coast. Egyptian Fertilizer Company (EFC) continues on track with its debottlenecking initiatives at both its urea production lines which are expected to be complete by the end of the first quarter of 2012. Production from the lines will start during the slow demand period of the third quarter. The debottlenecking at EFC will increase capacity by 250 thousand tons per annum or approximately 20% to an annual capacity of 1.55 million tons. All major capital expenditures related to the capacity additions have been spent and the projects will start contributing to our financial results during the coming 6 months. The Construction Group reported a 13.6% growth in backlog over the previous quarter exemplifying a continued positive improvement in markets. The Group secured US$ 1.42 billion in new construction work during the third quarter with new awards for the first nine months totaling US$ 2.74 billion. We continue to witness strong interest and demand for the Group's services across our core regional markets. At present, several key projects are entering negotiation phases and other high potential projects are currently under bidding. We expect a continued improvement in our Construction Group backlog by year end. As part of a move to streamline its two operating groups, OCI's fertilizer subsidiaries recently secured US$ 2.2 billion of term facilities which will be used to refinance the Fertilizer Group's existing credit facilities which had significant portions maturing in 2013. The new credit facilities have been organized at the Fertilizer Group subsidiaries level to facilitate the creation of standalone fertilizer and construction businesses under the new proposed holding company structure. The facilities will be syndicated in due course. For additional information contact: For additional information on OCI: OCI Investor Relations Department: www.orascomci.com Omar Darwazah OCI stock symbols: OCIC.CA / ORCI EY / OCICqL / ORSD / ORSCY Email: omar.darwazah@orascomci.com Orascom Construction Industries (OCI) Erika Wakid Nile City Towers - South Tower Email: 2005A Corniche El Nil erika.wakid@orascomci.com 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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