Orascom Development Egypt revenues hike 76.9% in H1

CAIRO– 15 August 2017: Orascom Development Egypt’s (ODE) revenues hiked 76.9 percent to reach LE 1.1 billion ($62 million) in the first half of 2017, compared to LE 618 million in H1 of 2016, a Tuesday statement said.

Net profit reached LE 117.4 million versus net loss of LE 106 million in H1 of 2016 and the adjusted Earnings before interest, tax, depreciation and amortization (EBITDA) surged 142.4 percent to reach LE 439.8 million compared to LE 181.4 million in the first six months of last year.

The hotels segment’s revenues hiked 145.2 percent to LE 448.8 million, rising from LE 183 million in H1 of 2016. Its gross operating profit reached LE 174 million, with a surge from LE 1.8 million in the first half of 2016.

The company noted that it has started renovation of Sheraton, Bellevue, Movenpick, Captains’ Inn, Turtles’ Inn and Ali Pasha Hotels, some of which will be finalized by year-end.

Orascom Development highlighted that it was able to decrease losses of the gross operating profits (GOP) of Taba Heights from LE 11.3 million in H1 of 2016 to LE 7.9 million in H1 of 2017. The number of operating rooms in the hotel amounted to 992 operating rooms compared to only 442 rooms operating in H1 of 2016.

Net sales more than doubled to reach LE 718.7 million in the first six months of this year compared to LE 359 million in the same period of the previous year. Real estate revenues reached LE 300.5 million, with a 35.4 percent increase, up from LE 222 million in the year-ago period.

In El Gouna, net sales leveled up 102.6 percent to LE 705 million compared to LE 348.0 million, backed by the targeted sales and marketing activities, after 82 hotel rooms were transferred into real estate products and sold out, the report added.

During the first half of this year, the companies launched two projects; ‘Fanadir Bay II’ and the second phase of ‘Tawila’ with a total value of $10.6 million and $22.4 million, respectively, and were both sold out.

Total real estate revenues reached LE 300.5 million in the first half of 2017 compared to LE 222 million a year ago. “Total deferred revenue from real estate that is yet to be recognized until 2019 reached LE 1.3 billion in H1 of 2017 compared to LE 800.3 million in H1 of 2016,” the statement said.