Orascom Construction [ORAS]: Recovery on Track Although Below Estimates
Overweight and 12M PT Maintained
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Egypt / Industrials / Q2 2021 Results
12M PT: EGP146.0 (+97%)
set on 12 April 2021
Investment Rating: Overweight | Risk Rating: Medium
Recovery led by MENA: Orascom Construction’s [ORAS] Q2 2021 net income after minorities jumped 143% y/y to USD23.8mn (vs. our estimates of USD29mn), driven by a strong performance across the MEA region, United States, and BESIX. Such performance was driven by an expansion in margins across all segments. MEA’s net income jumped 33.5% y/y to USD22.3mn in Q2 2021, while the U.S. posted a net income of USD1.7mn compared to only USD0.2mn in Q2 2020. Meanwhile, total revenues increased by 9.7% y/y to USD868.3mn (vs. our estimates of USD826mn), driven by the strong performance of MENA which in Q2 2021 which more than offset the 18.5% y/y drop in U.S. revenues to USD259.7mn.
Dina Abdelbadie
Equity Analyst
T +202 3300 5716