Welcome!

News Feed Item

OCI Announces 9M 2012 Results

CAIRO, EGYPT -- (Marketwire) -- 11/28/12 --


Results as at 30 September 2012

Cairo, Egypt / 28 November, 2012 8:00 AM

    OCI Reports 31% Decline in Earnings During the Third Quarter

Summary of Consolidated Results for Q3 2012 (1):

- Consolidated revenues increased 1.0% to USD 1,371.1 million (EGP
8,305.3 million) versus USD 1,357.8 million (EGP 8,093.7 million) in
Q3 2011

- EBITDA decreased 18.9% to USD 300.6 million (EGP 1,821.1 million)
versus USD 370.6 million (EGP 2,208.7 million) in Q3 2011

- Consolidated EBITDA margin of 21.9% and Construction Group EBITDA
margin of 9.0% duringQ3 2012

- Net income decreased 30.7% to USD 126.8 million (EGP 769.2
million) versus USD 182.9 million (EGP 1,090.2 million) in Q3 2011
Summary of Consolidated Results for 9M 2012:

- Consolidated revenues decreased 2.3% to USD 3,999.2 million (EGP
24,174.3 million) versus USD 4,092.9 million (EGP 24,237.1 million)
in 9M 2011

- EBITDA decreased 20.4% to USD 848.4 million (EGP 5,127.1
million) versus USD 1,066.0 million (EGP 6,312.7 million) in 9M 2011

- Consolidated EBITDA margin of 21.2% and Construction Group EBITDA
margin of 10.4% during9M 2012

- Net income decreased 38.6% to USD 340.7 million (EGP 2,059.0
million) versus USD 554.7 million (EGP 3,281.9 million) in 9M 2011

Consolidated Construction Group Backlog

- Consolidated backlog as at 30 September 2012 stood at USD 5.64
billion reflecting a decrease of 4.3% over the backlog as at 30 June
2012 and a decrease of 5.2% over the same period last year

- New awards totaled USD 361.5 million during the quarter

- Infrastructure and industrial work constitute 66.6% of the
Construction Group backlog as at 30 September 2012

(1) Consolidated financial figures presented in this press release are
unaudited

Statement from the Chairman and Chief Executive Officer - Nassef
Sawiris

Our third quarter results have declined year-on-year. EBITDA and net
income fell by 18.9% and 30.7% respectively primarily due to the
seasonal slowdown in the Construction Group's work and a decline in
margin from 10.8% during the second quarter to 9.0% during the third
quarter as a result of some provisioning on several projects. Overall,
net income increased from USD 119.4 million in the second quarter to
USD 126.8 million in the third quarter on the back of strong results
from the Fertilizer Group.

In November, natural gas supply to both our plants in Egypt witnessed
drastic supply cuts arising from unscheduled stoppages in the natural
gas grid for maintenance works. The pressure is only gradually
returning in the third week of disruptions and stoppages. In order to
minimize production down time, EBIC successfully brought forward its
scheduled three week maintenance turnaround from the fourth week of
November to the second week. EFC has also brought forward its revamp/
maintenance turnaround at one of its urea lines from the first quarter
of 2013 to the fourth quarter of 2012. The natural gas supply
shortfalls will have an impact on our fourth quarter production
utilization rates and results.

We continue to expect strong demand for our fertilizer products
supported by strong fundamentals. Farmers in the United States have
witnessed record income despite the fall in yields. A drop in yields
and growing demand for crops (especially corn and wheat) will bode well
for fertilizer prices.

In the United States, both OCI Beaumont and Iowa Fertilizer Company
(IFCo) have made noticeable progress over the last several months. OCI
Beaumont's ammonia and methanol lines are now operational. The plant is
now producing ammonia at the designed capacity of 250 thousand tons and
methanol at 70-80 % of designed capacity of 750 thousand tons per annum.

IFCo, our new Greenfield plant in Wever, Iowa, was issued its air
permit by the Iowa Department of Natural Resources (IDNR) last month
and the plant broke ground last week in an event attended by the
Governor of Iowa. The Construction Group was awarded the Engineering,
Procurement and Construction (EPC) contract to build the plant and
Maire Tecnimont and ThyssenKrupp Uhde will be supplying
state-of-the-art technology for the project. The construction of the
plant is scheduled for completion during the summer of 2015. The plant
will produce 1.5 - 2.0 million metric tons of urea, urea ammonium
nitrate (UAN), ammonia and diesel exhaust fluid (DEF) upon completion
and will supply farmers in the US Corn Belt. The total investment cost
of the project is now expected to be approximately USD 1.65 billion
and will be funded with a combination of equity and a tax-exempt bond
issuance.

In Algeria, Sorfert Algeria expects to complete all mechanical works on
Line II at the end of December. Once these works are complete, all
necessary permits will be obtained during the first quarter of 2013
ahead of the planned full-fledged commercial production. Our team is
working closely with our partner to ensure all planned works are
complete on time and all necessary permits are obtained. We expect
Sorfert Algeria to start contributing to earnings during the first half
of 2013.

In addition, the Fertilizer Group announced that it has acquired
distribution rights of ammonium sulphate (AS) produced by Lanxess N.V.
at its Antwerp facilities in Belgium. The distribution rights were
acquired from Fertiva GmbH, a wholly owned subsidiary of Eurochem. The
deal entails up to approximately 1 million metric tons of AS including
granular AS, a premium fertilizer product. OCI's wholly owned
subsidiary, Netherlands-based OCI Nitrogen currently distributes
approximate 0.75 million metric tons of AS produced by DSM N.V. in the
Netherlands. Combined, the Fertilizer Group expects to annually
distribute 1.75 million tons of AS in both standard and granular form,
making it a leading supplier in the European market and in Brazil.

The Construction Group reported a 4.3% decrease in backlog over the
previous quarter and the backlog as at the end of the third quarter
stood at USD 5.64 billion. New work secured during the third quarter
totaled USD 361.5 million and USD 1.49 billion during the first nine
months. The Group is increasing its focus on the United States'
infrastructure program and petrochemical construction market in
addition to expanding its presence and work in Saudi Arabia and Iraq.

The Construction Group recently announced that it will acquire the
Weitz Company, a general contractor based in Des Moines, Iowa. The
Group has already received Weitz's Board approval for the transaction
and an agreement has been signed. At present, final shareholders'
approval is pending but expected imminently. The Group is expected to
pay a total consideration of less than USD 90 million on an enterprisevalue
basis.

The Weitz Company will be pivotal in the construction of IFCo and will
allow the Construction Group to bid on infrastructure and industrial
opportunities in the United States market in addition to commercial and
federal work. We expect to start consolidating Weitz's results and
backlog during the fourth quarter.

The Egyptian Tax Authority has been reviewing the tax years 2005 -
2010. Our auditors and tax advisors have presented all necessary
documentation to the authorities. We are confident that new laws will
not be applied retroactively and that our legal and financial position
is in accordance with paragraph 8 of article no. 50 of law no. 91 of
2005, which clearly exempts all capital gains resulting from the sale
of shares listed on the Egyptian Stock Exchange (EGX).

On the planned demerger of the company's construction business from its
fertilizer business, we continue to work with the Egyptian Financial
Supervisory Authority (EFSA) to receive final procedural approvals for
the demerger, however no progress has taken place since October.


For additional information contact:
OCI Investor Relations Department:
Omar Darwazah
Email: [email protected]

Erika Wakid
Email: [email protected]
Hassan Badrawi
Director

Tel: +202 2461 1036/0727/0917
Fax: +202 2461 9409

For additional information on OCI:

www.orascomci.com

OCI stock symbols: OCIC.CA / OCIC EY / OCICqL / ORSD / ORSCY

Orascom Construction Industries (OCI)
Nile City Towers - South Tower
2005A Corniche El Nil
Cairo, Egypt

                    This information is provided by RNS
          The company news service from the London Stock Exchange

END

Contacts:
RNS
Customer
Services
0044-207797-4400
Email Contact
http://www.rns.com

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
All organizations that did not originate this moment have a pre-existing culture as well as legacy technology and processes that can be more or less amenable to DevOps implementation. That organizational culture is influenced by the personalities and management styles of Executive Management, the wider culture in which the organization is situated, and the personalities of key team members at all levels of the organization. This culture and entrenched interests usually throw a wrench in the work...
Cloud promises the agility required by today’s digital businesses. As organizations adopt cloud based infrastructures and services, their IT resources become increasingly dynamic and hybrid in nature. Managing these require modern IT operations and tools. In his session at 20th Cloud Expo, Raj Sundaram, Senior Principal Product Manager at CA Technologies, will discuss how to modernize your IT operations in order to proactively manage your hybrid cloud and IT environments. He will be sharing be...
As DevOps methodologies expand their reach across the enterprise, organizations face the daunting challenge of adapting related cloud strategies to ensure optimal alignment, from managing complexity to ensuring proper governance. How can culture, automation, legacy apps and even budget be reexamined to enable this ongoing shift within the modern software factory?
Building a cross-cloud operational model can be a daunting task. Per-cloud silos are not the answer, but neither is a fully generic abstraction plane that strips out capabilities unique to a particular provider. In his session at 20th Cloud Expo, Chris Wolf, VP & Chief Technology Officer, Global Field & Industry at VMware, will discuss how successful organizations approach cloud operations and management, with insights into where operations should be centralized and when it’s best to decentraliz...
SYS-CON Events announced today that T-Mobile will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. As America's Un-carrier, T-Mobile US, Inc., is redefining the way consumers and businesses buy wireless services through leading product and service innovation. The Company's advanced nationwide 4G LTE network delivers outstanding wireless experiences to 67.4 million customers who are unwilling to compromise on ...
@GonzalezCarmen has been ranked the Number One Influencer and @ThingsExpo has been named the Number One Brand in the “M2M 2016: Top 100 Influencers and Brands” by Analytic. Onalytica analyzed tweets over the last 6 months mentioning the keywords M2M OR “Machine to Machine.” They then identified the top 100 most influential brands and individuals leading the discussion on Twitter.
In recent years, containers have taken the world by storm. Companies of all sizes and industries have realized the massive benefits of containers, such as unprecedented mobility, higher hardware utilization, and increased flexibility and agility; however, many containers today are non-persistent. Containers without persistence miss out on many benefits, and in many cases simply pass the responsibility of persistence onto other infrastructure, adding additional complexity.
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend @CloudExpo | @ThingsExpo, June 6-8, 2017, at the Javits Center in New York City, NY and October 31 - November 2, 2017, Santa Clara Convention Center, CA. Learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm. In his Day 3 Keynote at 20th Cloud Expo, Chris Brown, a Solutions Marketing Manager at Nutanix, will explore t...
20th Cloud Expo, taking place June 6-8, 2017, at the Javits Center in New York City, NY, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy.
SYS-CON Events announced today that Juniper Networks (NYSE: JNPR), an industry leader in automated, scalable and secure networks, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Juniper Networks challenges the status quo with products, solutions and services that transform the economics of networking. The company co-innovates with customers and partners to deliver automated, scalable and secure network...
Five years ago development was seen as a dead-end career, now it’s anything but – with an explosion in mobile and IoT initiatives increasing the demand for skilled engineers. But apart from having a ready supply of great coders, what constitutes true ‘DevOps Royalty’? It’ll be the ability to craft resilient architectures, supportability, security everywhere across the software lifecycle. In his keynote at @DevOpsSummit at 20th Cloud Expo, Jeffrey Scheaffer, GM and SVP, Continuous Delivery Busine...
SYS-CON Events announced today that CA Technologies has been named "Platinum Sponsor" of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, New York, and 21st International Cloud Expo, which will take place in November in Silicon Valley, California.
Back in February of 2017, Andrew Clay Schafer of Pivotal tweeted the following: “seriously tho, the whole software industry is stuck on deployment when we desperately need architecture and telemetry.” Intrigue in a 140 characters. For me, I hear Andrew saying, “we’re jumping to step 5 before we’ve successfully completed steps 1-4.”
New competitors, disruptive technologies, and growing expectations are pushing every business to both adopt and deliver new digital services. This ‘Digital Transformation’ demands rapid delivery and continuous iteration of new competitive services via multiple channels, which in turn demands new service delivery techniques – including DevOps. In this power panel at @DevOpsSummit 20th Cloud Expo, moderated by DevOps Conference Co-Chair Andi Mann, panelists will examine how DevOps helps to meet th...