Orascom Construction sees net income rise despite falling revenue in USD on the back of EGP depreciation: Orascom Construction’s net income rose 39.7% y-o-y to USD 158.6 mn in 2023, the company said in an earnings release (pdf). The construction giant recorded revenues of USD 3.4 bn in 2023 — a 19.4% y-o-y decrease — which the company attributed to the devaluation of the EGP as its figures are denominated in USD.

On a quarterly basis: The company’s revenues dipped 10.9% y-o-y to USD 1 bn in 4Q 2023, which contributed to a 21.5% y-o-y drop in net income to USD 43.8 mn in the same period.

Backlog hits historic high, new awards triple in 4Q: Projects in Egypt accounted for 68.3%of Orascom Construction’s total consolidated backlog, which rose 45.7% y-o-y to reach a record USD 8.1 bn in 2023. The company’s new awards rose 234.3% y-o-y in 4Q to USD 1.9 bn, driving new awards up 58.8% y-o-y to USD 5.8 bn in 2023. Egypt projects constituted 66% of the company’s new awards in 4Q.

The float may shake things up: Orascom Construction’s backlog figures are calculated based on the official exchange rate as of 31 December 2023. Should the EGP come to settle at 50 to the greenback following the float, the company’s 2023 backlog figures would be c.8.2% lower at USD 7.4 bn, the statement said. The EGP currently stands around 46 to the greenback according to the current official rate.

Looking forward: “We continue to deliver consistent results as we execute our long-term operational, financial, and capital allocation strategies. We also believe that we have established the right fundamentals that have allowed us to navigate the current environment and position us well for the challenges of 2024,” company CEO Osama Bishai said.

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