7 hours ago
Orascom Construction expected to record high profits in 2025-2029
Egypt's Orascom Construction Company is expected to record high profits over the coming five years, buoyed by project upturn in Egypt and the Gulf oil producers, an Egyptian investment research firm said on Wednesday.
An increase in public and private project investment in Egypt will give a strong push to Orascom Construction, which is also targeting projects in the six-nation Gulf Cooperation Council (GCC), HC Securities and Investment said.
In a report released by HC's analyst Nisreen Mamdouh, the company said:'We expect construction spending in Egypt to be strong, especially on infrastructure and projects which have nearly completed, mainly transport, water and power.'
The report added:'Our outlook for private local and foreign investment in Egypt remains positive, especially in mega projects in renewable energy and industry.'
The report projected an 11 percent annual growth in Orascom profits during 2025-2025 and that projects executed by the Company would reach nearly $8 billion during that period, with an average annual value of new projects of around $4.16 billion.
'We expect an acceleration in project execution, which will boost its total revenues by around 5.4 percent annually during that period,' the report said.
On Tuesday, Egypt's parliament endorsed an investment plan during the 2025-2026 fiscal year, which starts on 1 July and targets public investments of around 1.16 trillion Egyptian pounds ($2.3 billion), nearly 37 percent of the total targeted investments.
(Writing by Nadim Kawach; Editing by Anoop Menon)
