Egypt-based Orascom Construction reported a 17 per cent drop in net profit during the first quarter of 2020 despite a rise in revenue.
Net profit attributable to shareholders fell to $25 million (Dh91.81m) from the same period a year ago, the company said in a statement on Thursday. Profits were hit due to losses at Besix, the contractor in which it has a 50 per cent stake, which "was impacted by negative adjustments on some of its projects". Revenue climbed 17.2 per cent year-on-year to $827.6m, due to growth in its Middle East operations.
New awards increased 24.7 per cent year-on-year to $599.2m during the first quarter.
“Our first quarter 2020 results build on the operational and financial health of the group displayed in the 2019 financial year and strengthen our position as we face a more challenging environment impacted by Covid-19,” Osama Bishai, chief executive of Orascom, said.
“Our resilient backlog and net cash levels are also two key items that provide us with additional support during this period.”
The company’s net cash position was $114.3m at the end of the first quarter and the backlog stood at $5.4 billion.
“We have further reinforced our focus on important elements of our business such as project execution and controls, cash preservation and collection and cost optimisation. In addition, our past repeated experiences of managing and succeeding during uncertainty has helped prepare us to address the current environment," Mr Bishai said.
Orascom signed new awards worth $335m in the Middle East during the first quarter of 2020 and expanded its presence across a number of sectors such as infrastructure, wastewater treatment, railway, roads and data centres.
During the quarter, the company was awarded the modification, renewal, installation, and maintenance of the Banha-Port Said railway lines in Egypt stretching across 45 kilometres of trackwork and signalling, it said. Orascom Construction is also part of a consortium to build the first independent sewage treatment plant concession in Saudi Arabia.
In the US, the company’s subsidiaries signed $265m of new awards during the quarter, up 14 per cent year-on-year.
Orascom said its shareholders approved a dividend distribution of $0.21 per share at the annual general meeting held earlier this week.
The company, which developed a task force to deal with Covid-19, said work was briefly halted across some of its projects during the second quarter for a disinfection round.
"The impact related to Covid-19 was minimal in the first quarter of 2020 and is expected to be reflected in the second quarter 2020 results," Orascom noted.
Diriyah%20project%20at%20a%20glance
%3Cp%3E-%20Diriyah%E2%80%99s%201.9km%20King%20Salman%20Boulevard%2C%20a%20Parisian%20Champs-Elysees-inspired%20avenue%2C%20is%20scheduled%20for%20completion%20in%202028%0D%3Cbr%3E-%20The%20Royal%20Diriyah%20Opera%20House%20is%20expected%20to%20be%20completed%20in%20four%20years%0D%3Cbr%3E-%20Diriyah%E2%80%99s%20first%20of%2042%20hotels%2C%20the%20Bab%20Samhan%20hotel%2C%20will%20open%20in%20the%20first%20quarter%20of%202024%0D%3Cbr%3E-%20On%20completion%20in%202030%2C%20the%20Diriyah%20project%20is%20forecast%20to%20accommodate%20more%20than%20100%2C000%20people%0D%3Cbr%3E-%20The%20%2463.2%20billion%20Diriyah%20project%20will%20contribute%20%247.2%20billion%20to%20the%20kingdom%E2%80%99s%20GDP%0D%3Cbr%3E-%20It%20will%20create%20more%20than%20178%2C000%20jobs%20and%20aims%20to%20attract%20more%20than%2050%20million%20visits%20a%20year%0D%3Cbr%3E-%20About%202%2C000%20people%20work%20for%20the%20Diriyah%20Company%2C%20with%20more%20than%2086%20per%20cent%20being%20Saudi%20citizens%0D%3C%2Fp%3E%0A
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
The five stages of early child’s play
From Dubai-based clinical psychologist Daniella Salazar:
1. Solitary Play: This is where Infants and toddlers start to play on their own without seeming to notice the people around them. This is the beginning of play.
2. Onlooker play: This occurs where the toddler enjoys watching other people play. There doesn’t necessarily need to be any effort to begin play. They are learning how to imitate behaviours from others. This type of play may also appear in children who are more shy and introverted.
3. Parallel Play: This generally starts when children begin playing side-by-side without any interaction. Even though they aren’t physically interacting they are paying attention to each other. This is the beginning of the desire to be with other children.
4. Associative Play: At around age four or five, children become more interested in each other than in toys and begin to interact more. In this stage children start asking questions and talking about the different activities they are engaging in. They realise they have similar goals in play such as building a tower or playing with cars.
5. Social Play: In this stage children are starting to socialise more. They begin to share ideas and follow certain rules in a game. They slowly learn the definition of teamwork. They get to engage in basic social skills and interests begin to lead social interactions.
The Penguin
Starring: Colin Farrell, Cristin Milioti, Rhenzy Feliz
Creator: Lauren LeFranc
Rating: 4/5
The biog
From: Upper Egypt
Age: 78
Family: a daughter in Egypt; a son in Dubai and his wife, Nabila
Favourite Abu Dhabi activity: walking near to Emirates Palace
Favourite building in Abu Dhabi: Emirates Palace
yallacompare profile
Date of launch: 2014
Founder: Jon Richards, founder and chief executive; Samer Chebab, co-founder and chief operating officer, and Jonathan Rawlings, co-founder and chief financial officer
Based: Media City, Dubai
Sector: Financial services
Size: 120 employees
Investors: 2014: $500,000 in a seed round led by Mulverhill Associates; 2015: $3m in Series A funding led by STC Ventures (managed by Iris Capital), Wamda and Dubai Silicon Oasis Authority; 2019: $8m in Series B funding with the same investors as Series A along with Precinct Partners, Saned and Argo Ventures (the VC arm of multinational insurer Argo Group)
