Half Year 2024 Orascom Construction PLC Earnings Call Transcript
Key Points
- Orascom Construction PLC (CAI:ORAS) achieved a revenue of $1.477 billion in H1 2024, showing steady progress.
- The company improved its EBITDA and bottom line, with adjusted EBITDA increasing 65.2% year-on-year in Q2 2024.
- The first phase of the 500-megawatt wind farm is ahead of schedule and expected to be operational in Q4 2024.
- The U.S. operations showed strong performance with a 27.8% year-on-year increase in revenue, driven by data center and aviation projects.
- BESIX contributed positively to profitability, with a 20% higher contribution in Q2 2024 compared to Q2 2023.
- Group revenue decreased by 6.3% year-on-year to $711 million in Q2 2024, impacted by the devaluation of the Egyptian pound.
- MEA revenue decreased by 29% year-on-year due to the EGP devaluation and completion of existing projects.
- The group's total equity decreased to $674 million as of June 2024, primarily due to currency translation differences and dividend payouts.
- Cash outflow from operations was $54.2 million in Q2 2024, mainly related to high progress on certain projects.
- The EBITDA margin for U.S. operations dropped by 2.9% in Q2 and H1 2024.
Good day, everyone, and welcome to the Orascom Construction first-half 2024 results conference call. (Operator Instructions)
I'd now like to hand the call over to Osama Bishai, CEO. Please go ahead.
Good afternoon, good morning, everyone. Well, I hope everybody had a good summer. For the H1 results for 2024, we have been progressing in a steady manner on all our fronts on the construction side. We have achieved a revenue of $1.477 billion on both the MENA and the U.S. side.
We have improved our EBITDA and bottom line as a KPI to our business. On the construction side, we are going to complete the first phase of our 500-megawatt wind farm ahead of schedule, and it should be operational in Q4 this year, which is between 2 to 3 months ahead of schedule. And the second phase will be done by early summer next year, which is, again, 2 to 3 months ahead of schedule. On our other construction, which is with the EPC work has been progressing such sectors to ourselves and we are progressing well, and we believe that
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