Orascom improves profitability but backlog slips

The construction firm’s revenue dropped by 3.3% to US$3.3 billion in 2024, as compared to the year before. Revenue in the Middle East and Africa was down 11% to $1.6 billion, while it increased 5.5% to just over $1.6 billion in the USA.

The company’s adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) increased 13.3% year on year to $158.3 million, driven by a 42.6% increase in the USA.

But its order backlog dropped by 5.8%, to $7.6 billion. New awards slid 48% to just under $3 billion, down from nearly $5.8 billion the year before.

Inclusive of the company’s 50% share in contractor BESIX, its order backlog stands at $11.9 billion, up 9.1% year on year, however. New awards inclusive of BESIX were $6.6 billion, down 11.2%.

Orascom chief executive Osama Bishai said, “We continue to successfully navigate a challenging and uncertain environment. Our strong fundamentals, focus on performance excellence, strict project controls, and disciplined project controls, and disciplined project selection have allowed us to achieve our current results and positioned us well for the period ahead.

“Our construction activities enjoy a healthy backlog of US$7.6 billion, led by quality projects across our target sectors in Egypt, the Middle East and USA. Our backlog in Egypt mitigates currency volatility, while our U.S. business continues to progress in a robust manner.”

Bishai said that the company is continuing with its plan to diversify geographically, noting that it recently signed a contract to build the 3GW Qurayyah IPP Power Plant Expansion in Saudi Arabia.

It is also developing its concessions business and started commercial production of 306 MW at a newly expanded 650 MW wind farm in Egypt in December, four months ahead of target.

New awards for its business in the Middle East and Africa during the quarter mainly comprised projects in the logistics, infrastructure, and commercial sectors, including additional work on the Group’s ongoing construction of the Suez Canal Container Terminal expansion, the Grand Egyptian Museum’s walkway connection to the pyramids, and road networks across Egypt.

Its new projects in the USA, where it owns contractors Weitz and Contrack Watts, were mainly in sectors such as data centres, aviation, light industrial and commercial.