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A good one for Orascom Construction 💸

Orascom Construction raises its profits 18% in 9M

Orascom Construction raised its net income attributable to shareholders 18.2% YoY to USD 86.3 million in 9M 2024. On a Q3 basis, its net income attributable to shareholders increased 34.2% YoY to USD 21.6 million.

Revenues:

Consolidated revenue increased 5.1% YoY to USD 842.5 million in Q3 2024 and slightly decreased 1.9% YoY to USD 2.319 billion in 9M.

The company’s Middle East and Africa operations comprised 47% and 46% of total revenue in Q3 2024 and 9M 2024, respectively.

Revenue comparison YoY in Egypt was impacted by the devaluation of the EGP in March 2024, while an increase in revenue from its US operations reflects project execution and backlog growth, the company noted.

Backlog:

Consolidated backlog excluding from BESIX Group increased 14.7% YoY to USD 8 billion as of September 2024’s end.

Consolidated new awards decreased 59.1% YoY to USD 926.1 million in Q3 2024 and 33.1% YoY to USD 2.6 billion in 9M 2024.

The Group’s current backlog is at record levels even after the devaluation of the Egyptian pound in March 2024, however, it said.

Remember, the company snapped up awards during 9M:

Back in June, Orascom Construction, Metito, Hassan Allam Construction, and Arab Contractors snapped up four Guinness World Records for their newly completed New Delta Irrigation Water Treatment Plant, including awards for the biggest water treatment plant globally.

And more moves on the sustainability front:

Progress is underway to expand total capacity of the company’s 500 MW Build-Own-Operate (BOO) wind farm in Egypt by another 150 MW, making the project the largest in Africa and increasing the Group’s total operational wind power capacity to 913 MW by Q3 2025, the company said in its latest earnings release.

Over in the UAE, progress is on track on the large scale seawater treatment and supply project for ADNOC in Abu Dhabi.

The company, along with other EGX-listed companies including Elsewedy Electric, Hassan Allam, and Taqa Arabia, is also reportedly gearing up to ink agreements with the government to generate a total of 1,700 GWh of electricity from municipal solid waste at a cost of up to USD 1.2 bn. The waste–to-energy projects are planned to repurpose 3.5 million tons of refuse annually.

Catalyst Partners lists Egypt’s first SPAC

Catalyst Partners yesterday officially listed Egypt’s maiden special purpose acquisition company on the bourse.

SPACs?

SPACs, also known as “blank check companies,” are publicly traded shell corporations created to acquire or merge with privately held firms to enable the latter to IPO.

SPACs raise capital through an IPO, store the money in a trust, and are typically given a specific period (18-24 months) to acquire or merge with a potential company.

Refresher:

The SPAC, named “Catalyst Partners Middle East”, has EGP 10 million in paid-up capital.

The company plans to ultimately increase its capital to EGP 235 million by issuing 22.5 million shares at EGP 10 apiece in a private placement on the EGX, its Chairman said.

Following the FRA’s new regulation:

Per an FRA regulation enacted in July, SPACs now have a two-year timeframe from their listing date to finalize an acquisition, which may involve acquiring full ownership or a controlling interest in a given company.

The acquisition target must be presented to shareholders within six months of IPOing, with shareholders who object being given a month to withdraw.

EGP 93 billion in investment guarantees courtesy of the EU?

The EUR 1.8 billion (c. EGP 93.12 billion) in investment guarantees announced in March by the EU as part of the bloc’s EUR 7.4 billion aid package to Egypt could soon be unlocked after our Planning and International Cooperation Minister met with an EU delegation during the weekend.

Investment guarantees?

Investment guarantees are a type of insurance aimed at insulating financiers from noncommercial risks outside their own country as compensation for losses sustained by their investments.

Details on the EU package:

The EU’s guarantees are are projected to attract around EUR 11 billion in overseas investments, focusing on industries such as energy, food security, water, climate action, and human capital, Enterprise noted.