A Dh146 million Abu Dhabi contract awarded to Orascom Construction Industries (OCI) is a triumph, but not enough to overcome challenges Egypt's biggest publicly listed company faces from project delays and cancellations at home.
OCI, in a joint venture with the Italian engineering company Tecnimont and the South Korean group Samsung Engineering, will carry out civil works for Abu Dhabi Polymers Company, also known as Borouge, it was announced on Wednesday.
Borouge is a 60-40 joint venture between the Abu Dhabi National Oil Company and the Austrian plastics company Borealis.
But OCI is facing headwinds at home. Rania Zayed, the senior adviser to the Egyptian ministry of finance, said this week that the country might have to extend bid submission deadlines for four infrastructure projects worth $2.6 billion.
OCI had prequalified for the $1bn Rod El Farag Highway project, which was among those delayed.
Bid submissions for a hospital project had been due this month, followed by road projects in May, and water and sewerage plants in August. All have also been delayed.
"OCI witnessed an interruption in the award of new construction contracts in Egypt," said Samir Murad, an analyst at National Bank of Kuwait. "The company's construction business outside Egypt continues to operate normally through its satellite offices in Abu Dhabi, Dubai and other places."
Mr Murad placed the rating and target price of OCI shares "under review" on February 7.
Shares of the company, listed on the Egyptian Exchange, have been suspended since the bourse shut on January 26 because of the unrest that led to the ousting of the country's president, Hosni Mubarak. The exchange is due to open on Sunday, officials said this week.
OCI is also tradable on the London Stock Exchange, where shares have declined 10 per cent since January 26.
But OCI has healthy liquidity, with a cash balance of $900m at the holding company level and $400m with various associates and joint ventures.
halsayegh@thenational.ae
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hall of shame
SUNDERLAND 2002-03
No one has ended a Premier League season quite like Sunderland. They lost each of their final 15 games, taking no points after January. They ended up with 19 in total, sacking managers Peter Reid and Howard Wilkinson and losing 3-1 to Charlton when they scored three own goals in eight minutes.
SUNDERLAND 2005-06
Until Derby came along, Sunderland’s total of 15 points was the Premier League’s record low. They made it until May and their final home game before winning at the Stadium of Light while they lost a joint record 29 of their 38 league games.
HUDDERSFIELD 2018-19
Joined Derby as the only team to be relegated in March. No striker scored until January, while only two players got more assists than goalkeeper Jonas Lossl. The mid-season appointment Jan Siewert was to end his time as Huddersfield manager with a 5.3 per cent win rate.
ASTON VILLA 2015-16
Perhaps the most inexplicably bad season, considering they signed Idrissa Gueye and Adama Traore and still only got 17 points. Villa won their first league game, but none of the next 19. They ended an abominable campaign by taking one point from the last 39 available.
FULHAM 2018-19
Terrible in different ways. Fulham’s total of 26 points is not among the lowest ever but they contrived to get relegated after spending over £100 million (Dh457m) in the transfer market. Much of it went on defenders but they only kept two clean sheets in their first 33 games.
LA LIGA: Sporting Gijon, 13 points in 1997-98.
BUNDESLIGA: Tasmania Berlin, 10 points in 1965-66
