Dubai, UAE / Cairo, Egypt / 30 August 2023
RESULTS ANNOUNCEMENT
H1 2023
ORASCOM CONSTRUCTION REPORTS
BACKLOG OF USD 5.5 BILLION AND REVENUE
OF USD 1.6 BILLION IN H1 2023
HIGHLIGHTS
• Revenue of USD 1,563.5 million, consolidated EBITDA of USD 150.7 million and net income attributable to shareholders
of USD 98.7 million in H1 2023
• Net cash position of USD 163.1 million as of 30 June 2023
• Consolidated backlog of USD 5.5 billion and pro forma backlog including 50% share in BESIX of USD 8.5 billion as of
30 June 2023
• Consolidated new awards of USD 1.6 billion and pro forma new awards including 50% share in BESIX of USD 2.6 billion
in H1 2023
• BESIX reports a standalone backlog of EUR 5.5 billion and new awards of EUR 1.8 billion in H1 2023
• Divested two non-strategic building materials subsidiaries for EGP 2.2 billion in May and June
• Successfully completed a share buyback of 5.6% in June
STATEMENT FROM THE CEO
We continue to create value for shareholders and focus on our long-term strategy.
We recently divested two of our non-strategic building materials subsidiaries in May and June. These transactions align with our approach
to unlock value across our matured assets for allocation to growth and value accretive areas.
Furthermore, as part of our commitment to effective capital allocation and long-term shareholder returns, we completed a share buyback of
5.6% in June.
We also continue to make tangible progress on our investments in the wind energy sector. Construction at the new 500 MW build-own-
operate wind farm in Egypt is well underway and ahead of schedule. This project is seeing us leverage our key experience as a first mover
in renewable energy in Egypt, as we combine the highest levels of execution, health and safety, and collaboration with world class partners
and international financial institutions to deliver sustainable energy to over 800,000 Egyptian homes.
This project also exemplifies our growing concessions portfolio under development, which now encompasses several key sectors including
water, renewable energy, and hydrogen in three different countries, Egypt, UAE, and Saudi Arabia.
On our EPC business, we added USD 735.7 million of new awards during the quarter and maintained our backlog at a consistent level
of USD 5.5 billion. The U.S. accounted for 60% of new awards in Q2 2023, while a sizable portion of the Group’s backlog in Egypt is
denominated in foreign currency and financed by international institutions.
BESIX reported improved profitability in Q2 and H1 2023, and increased backlog of 13.0% y-o-y to EUR 5.5 billion. We also received a
dividend of EUR 10 million from BESIX for our 50% share during the quarter.
OSAMA BISHAIDubai, UAE / Cairo, Egypt / 30 August 2023
RESULTS ANNOUNCEMENT
H1 2023
CONSOLIDATED BACKLOG
USD million H1 2023 H1 2022 Change Q2 2023 Q2 2022 Change
Equity consolidation
Backlog 5,512.2 6,474.7 (14.9)%
New awards 1,594.1 2,380.2 (33.0)% 735.7 1,762.7 (58.3)%
Pro forma inc. 50% of BESIX
Backlog 8,534.3 9,025.1 (5.4)%
New awards 2,552.2 3,202.7 (20.3)% 1,133.3 2,156.1 (47.4)%
Consolidated backlog excluding BESIX decreased 14.9% y-o-y and increased 1.0% q-o-q Backlog by Segment − Equity
to USD 5.5 billion as of 30 June 2023. Consolidated new awards decreased 58.3% y-o-y
Consolidation
to USD 735.7 million in Q2 2023 and 33.0% y-o-y to USD 1.6 billion in H1 2023. The y-o-y
decline in new awards in Q2 and H1 2023 is due to the above-average level of new awards
Backlog by geography
achieved in Q2 2022, during which the large high-speed rail contract was signed.
Including the Group’s 50% share in BESIX, pro forma backlog decreased 5.4% y-o-y to
USD 8.5 billion as of 30 June 2023. Pro forma new awards decreased 47.4% y-o-y to
USD 1.1 billion in Q2 2023 and 20.3% y-o-y to USD 2.6 billion in H1 2023. Egypt 67.9%
USA 26.9%
MEA Saudi Arabia 1.8%
The Group signed USD 751.0 million of new awards in Egypt during H1 2023, of which
Other MEA 3.4%
USD 293.3 million were added in Q2 2023.
New awards signed during the quarter spanned the transportation, industrial and
infrastructure sectors, and complement projects added in Q1 across renewable energy
and premium private sector real estate. Backlog by sector
USA
The U.S. subsidiaries signed USD 843.1 million of new awards in H1 2023, of which
USD 442.4 million were added in Q2 2023.
Infrastructure 63.8%
The new awards momentum established in Q1 2023 was maintained, as the Group signed Commercial 22.2%
additional work across its core data center, commercial and light industrial sectors. Industrial 14.0%
BESIX Group
BESIX’s standalone backlog stood at EUR 5.5 billion as of 30 June 2023, reflecting an
increase of 13.0% y-o-y. New awards totaled EUR 728.9 million in Q2 2023, increasing
total new awards in H1 2023 15% y-o-y to EUR 1.8 billion. Backlog by client
Public 75.2%
Private 24.8%Dubai, UAE / Cairo, Egypt / 30 August 2023
RESULTS ANNOUNCEMENT
H1 2023
SUMMARY FINANCIAL RESULTS
Summary Income Statement
USD million H1 2023 H1 2022 Change Q2 2023 Q2 2022 Change
Revenue 1,563.5 1,914.6 (18.3)% 758.6 934.9 (18.9)%
MEA 901.7 1,376.6 (34.5)% 453.7 635.4 (28.6)%
USA 661.8 538.0 23.0% 304.9 299.5 1.8%
EBITDA 150.7 92.9 62.2% 115.3 42.6 170.7%
MEA 137.9 87.3 57.9% 109.1 38.9 180.5%
USA 12.8 5.6 128.8% 6.2 3.7 67.6%
EBITDA margin 9.6% 4.9% 15.2% 4.6%
MEA margin 15.3% 6.3% 24.0% 6.1%
USA margin 1.9% 1.0% 2.0% 1.2%
Net income attributable to shareholders 98.7 33.9 191.2% 62.6 20.8 201.0%
MEA 82.9 36.3 128.3% 50.5 14.0 260.7%
USA 9.4 4.1 130.5% 5.6 2.3 143.5%
BESIX 6.4 (6.5) 6.5 4.5 44.4%
Net income margin 6.3% 1.8% 8.3% 2.2%
MEA margin 9.2% 2.6% 11.1% 2.2%
USA margin 1.4% 0.8% 1.8% 0.8%
Net Debt (cash) Net income attributable to shareholders Building Materials, O&M and Equipment
increased 201.0% y-o-y to USD 62.6 million in Services
USD million 30 Jun 23 31 Dec 22 Change Q2 2023 and 191.2% y-o-y to USD 98.7 million Net income in H1 2023 from the Group’s
in H1 2023. Net income in Q2 2023 benefitted investments and subsidiaries in building
Cash and cash
from the divestment of two building material materials, operation and maintenance (O&M) and
equivalents 430.9 537.7 (19.9)%
subsidiaries, and from foreign exchange gains equipment services stood at USD 11.3 million,
Total debt 267.8 212.0 26.3%
due to the Group’s favorable currency net asset accounting for 11% of total net income. This
Total equity 681.8 691.3 (1.4)% position in Egypt. figure excludes net income contribution from and
Net debt (cash) (163.1) (325.7) Excluding total one-off items, net income stood capital gain related to the two building materials
entities divested in May and June 2023. The total
at USD 20.8 million in Q2 2023 and USD 56.9
Consolidated revenue decreased 18.9% y-o-y to gross value of the two transactions amounted to
million in H1 2023.
USD 758.6 million in Q2 2023 and 18.3% y-o-y EGP 2.2 billion.
to USD 1,563.5 million in H1 2023. The MEA The Group’s net cash position stood at
The Group’s current activities in this segment
operations comprised 60% and 58% of total USD 163.1 million as of 30 June 2023. This
include steel fabrication, aluminum and glass
revenue in Q2 2023 and H1 2023, respectively, compares to net cash positions of USD 104.3
façade systems, facility management, O&M, and
while the USA operations accounted for the million as of 30 June 2022, USD 159.1 million
equipment services.
balance. as of 31 March 2023 and USD 325.7 million as
of 31 December 2022. Total equity decreased Health and Safety
Consolidated EBITDA increased 170.7%
1.4% y-o-y and increased 3.9% q-o-q to USD The Group extended its safety record in H1 2023.
y-o-y to USD 115.3 million in Q2 2023 and
679.6 million as of 30 June 2023. The lost time injury (LTI) rate in the Middle East
62.2% y-o-y to USD 150.7 million in H1 2023.
and Africa stood at 0.01 with manhours of 86
Consolidated EBITDA margins stood at 15.2% Concessions
million, and in USA stood at 0.00 with manhours
in Q2 2023 and 9.6% in H1 2023. The Group’s Construction on the new 500 MW BOO wind
of 1.5 million.
performance in the U.S. continued to improve, farm is ahead of schedule, where the pouring of
with EBITDA in the U.S. increasing 1.7x y-o-y in the foundations of the wind turbine generators Notable health and safety achievements include
Q2 2023 and 2.3x y-o-y in H1 2023. is already underway. In addition, the Dammam 10 million manhours at a new private commercial
West Independent Sewage Treatment Plant project in Egypt and 5.8 million manhours without
Excluding total one-off items (all of which are
BOOT project is expected to commence LTI at data center projects since inception in USA.
attributable to the MEA region), EBITDA stood
operations in Q4 2023.
at USD 22.4 million in Q2 2023 and USD 57.8 Share Buyback
million in H1 2023. The Group also signed in May a new contract On June 5, the Company purchased 6,517,444
to develop, own and operate a large-scale of its own shares, representing 5.58% of the
Including the Group’s 50% share in BESIX,
seawater treatment and water transportation Company’s total issued shares, for USD 3.0 per
pro forma EBITDA increased 69.6% y-o-y to
project in Abu Dhabi, UAE for ADNOC. share. This share buyback was executed on
USD 176.1 million in H1 2023. Net income
contribution from BESIX increased 44.4% y-o-y These projects complement the Group’s current Nasdaq Dubai. The Company will cancel these
to USD 6.5 million in Q2 2023, bringing total net operational concessions: the 262.5 MW BOO shares in September and is holding these shares
income contribution from BESIX in H1 2023 to wind farm and the 250,000 m3/day BOOT as treasury shares until such cancellation occurs.
USD 6.4 million. wastewater treatment plant in Egypt.Dubai, UAE / Cairo, Egypt / 30 August 2023
RESULTS ANNOUNCEMENT
H1 2023
ABOUT ORASCOM CONSTRUCTION PLC
Orascom Construction PLC is a leading global engineering and construction contractor primarily focused on infrastructure, industrial and
high-end commercial projects in the Middle East, Africa, and the United States. Orascom Construction also develops, operates and invests
in concessions, owns 50% of BESIX Group, and holds a building materials, facility management and equipment services portfolio. The
Group has consistently ranked among the world’s top contractors and is dual listed in the UAE and Egypt.
For more information,please visit www.orascom.com.
CONTACT INVESTOR RELATIONS
Hesham El Halaby
Director
hesham.elhalaby@orascom.com
ir@orascom.com
+971 4 318 0900
NASDAQ Dubai: OC
EGX: ORAS
orascom.com
IMPORTANT NOTICE AND DISCLAIMER
This document has been provided to you for information purposes only. This document does not constitute an offer of, or an invitation to
invest or deal in, the securities of Orascom Construction PLC (the “Company”). The information set out in this document shall not form
the basis of any contract and should not be relied upon in relation to any contract or commitment. The issue of this document shall not be
taken as any form of commitment on the part of the Company to proceed with any negotiation or transaction.
Certain statements contained in this document constitute forward-looking statements relating to the Company, its business, markets,
industry, financial condition, results of operations, business strategies, operating efficiencies, competitive position, growth opportunities,
plans and objectives of management and other matters. These statements are generally identified by words such as “believe”, “expect”,
“plan”, “seek”, “continue”, “anticipate”, “intend”, “estimate”, “forecast”, “project”, “will”, “may” “should” and similar expressions. These
forward-looking statements are not guarantees of future performance. Rather, they are based on current plans, views, estimates,
assumptions and projections and involve known and unknown risks, uncertainties and other factors, many of which are outside of the
Company’s control and are difficult to predict, that may cause actual results, performance or developments to differ materially from any
future results, performance or developments expressed or implied from the forward-looking statements.
The Company does not make any representation or warranty as to the accuracy of the assumptions underlying any of the statements
contained herein. The information contained herein is expressed as of the date hereof and may be subject to change. Neither the Company
nor any of its controlling shareholders, directors or executive officers or anyone else has any duty or obligation to supplement, amend,
update or revise any of the forward-looking statements contained in this document, whether as a result of new information, future events or
otherwise, except as required by applicable laws and regulations or by any appropriate regulatory authority.
Backlog and new awards are non-IFRS metrics based on management’s estimates of awarded, signed and ongoing contracts which
have not yet been completed, and serves as an indication of total size of contracts to be executed. These figures and classifications are
unaudited, have not been verified by a third party, and are based solely on management’s estimates.

Sentiment: neutral