Orascom Construction Industries increased its turnover in 2006 by 46.7% to US$2,865.3m and the EBITDA advanced by 68.9% to US$778.9m, while the net profit rose by 59.0% to US$464.5m. Capital expenditure last year rose by 113.0% to US$1,415.5m, including the US$252.9m spent on acquisitions, but after deducting divestments of US$4.0m. The net debt at the end of 2006 increased by 47.2% to $1,386.3m. However, shareholders’ funds more than doubled, with the result that the gearing level fell from 127.3% to 91.4%. While the cement division only contributed 25% of the turnover, with contracting providing the balance, the cement division provided 58% of the EBITDA and 57% of the net income. The contracting operations increased their profit contribution at a faster rate than cement last year, as in 2005, had cement accounted for 66% of the EBITDA and 68% of the net profit. For comparison, Contracting turnover rose by 46.7% to US$2,286.5m and the EBITDA jumped by 110.4% to US$319.4m.
The cement division increased turnover by 52% to US$860.5m, while the EBITDA rose by 49.3% to US$461.3m and the net income emerged 86.4% higher at US$462.1m. Group cement shipments increased by 38.3% to 13.89Mt, while ready-mixed concrete deliveries more than trebled to 1.59Mm³. Group cement capacity stood at 21.0m tonnes at the end of 2006 compared with 14.4Mta earlier. Excluding acquisitions, additional capacity coming on stream should see capacity rise to 30.7Mt by the end of this year and to 33.7Mt by the end of 2008. A further 2Mt of capacity are planned to be added in 2009 and Orascom has recently made a public offer to acquire the outstanding shares in the Turkish cement producer Bati Andalou Çimento, in which it currently holds a 23% stake.
Capacity is being added at a faster rate this year: The renovated ’Line 2’ at the Tasluja works in Kurdistan was re-commissioned in March of this year, adding an annual capacity of 1.15Mt. A 0.2Mt additional capacity at OCI Çimento’s Van works should come on stream in May of this year, followed by a white cement plant in Algeria in July (0.55Mt) and a 2.9Mta production line for Bazian Cement in Iraq (65% owned by Orascom). The month of October should see the commissioning of two new cement plants; a 3Mta works for the 50%-owned Emirates Cement Company in the United Arab Emirates and a 2.5Mta grey cement works for Ciments Blanc d’Algérie.