Orascom Construction Industries increased first half turnover by 46.5% to US$1,731.3m (E£9874.1m) and the EBITDA rose by 48.1 per cent to US$515.0m (E£2,937.5m), with the net profit advancing by 46.2 per cent to US$307.1m (E£1,751.5m). The cement division raised its turnover by 73.9 per cent to US$692.9m, with the EBITDA improving by 54.8 per cent to US$339.6m, with the largest contributions coming from Algeria, Egypt, Northern Irak and Spain. Cement shipments in Algeria and Egypt showed double-digit growth rates and the increased available capacity at the leased Tasluja Cement in Northern Irak led to a seven-fold increase production there. The 70 per cent -owned subsidiary in Irak, Bazian Cement Company, should start production at its new 2.9m tonnes per annum plant later this year.
The portion of Orascom’s turnover coming from cement, as opposed to contracting, rose from 29 to 40 per cent for the six months, while the EBITDA contribution advanced from 64-67per cent .
The equipment was now been ordered, and the construction contracts placed, for the new cement plants in Syria (75 per cent owned by Orascom) and in Saudi Arabia (where the ownership is 50 per cent). In terms of few investments, Orascom is taking a 50% interest in Sangwon cement works in North Korea, which is being modernised and having its capacity increased to 2.5Mta, and is to build a new cement works in South Africa. The new South African subsidiary, the 67.5 per cent-owned Mafeking Cement Company, will have an annual capacity of 2Mt and should go into production in 2010. By the end of this year, Orascom should have an installed cement capacity of around 32Mt, which should rise to 36Mt next year and to 44Mt by the end of 2010.
Cement deliveries were approximately 32% higher at 8.4Mt, while ready-mixed concrete deliveries jumped from 0.30Mm³ to 1.64Mm³. Recent acquisitions have added an aggregates production amounting to 3.2Mt for the period.