The ordinary general meeting of Orascom Development Egypt has approved a total distribution of 60.7 million Egyptian pounds to employees, without declaring any distributions to shareholders and deferring the remaining profits to future years.
The general assembly has adopted the report of the board of directors on the company’s activities and financial statements for the previous year.
The general assembly has also decided to renew and amend the previous contract for contracting and construction, which was previously approved with the Red Sea Company for Contracting, Construction, and Development. They have also approved granting the board of directors the authority to amend the value of the offer up to 6 billion Egyptian pounds to carry out the company’s contracting and construction works during the current year.
Orascom Development Egypt’s real estate sales increased by 74.9% during the previous year, reaching 19.5 billion Egyptian pounds, compared to sales of 11.1 billion Egyptian pounds in 2022.
The company achieved real estate sales of 6.4 billion Egyptian pounds during the last quarter of the previous year, compared to 3.8 billion Egyptian pounds in the same quarter of 2022, with a growth rate of 65.9%.
The company confirmed that the sales achieved during the fourth quarter of the previous year are the highest quarterly sales ever achieved in its history.
The company attributed the increase in real estate sales to the rise in average square meter prices in all destinations, in addition to an increase in the number of units sold.
It clarified that the share of international sales to Egyptians abroad and foreigners reached 37% of the total sales achieved during the previous year.
Orascom Development Egypt recorded record real estate sales of 13.1 billion Egyptian pounds during the first nine months of 2023, an increase of 80%.
Net profits increased by 32.9% to exceed 2 billion Egyptian pounds, despite incurring currency exchange losses amounting to 236.4 million Egyptian pounds due to the devaluation of the pound.
Total revenues increased to 10.4 billion Egyptian pounds, representing a 55% increase.
The company highlighted a 57.5% increase in pre-tax, interest, depreciation, amortization, and non-cash items profits, reaching 4 billion Egyptian pounds with a margin of 38.3%.
During the period, hotel sector revenues increased by 111.5% to reach 2.3 billion Egyptian pounds. The company’s real estate sales during the first nine months of 2023 amounted to approximately 13.1 billion Egyptian pounds, with an 80.0% increase.
The company also mentioned the sale of a 45,350 square meter land plot in El Gouna for a total value of around 390 million Egyptian pounds.
In the third quarter of the previous year, total revenues increased by 3.45% to reach 4.2 billion Egyptian pounds, while pre-tax, interest, depreciation, amortization, and non-cash items profits increased by 48.3% to reach 1.7 billion Egyptian pounds with a margin of 40.3%.
The company noted a 52.8% growth in net profits to approximately 1 billion Egyptian pounds, highlighting the achievement of 5.6 billion pounds in real estate sales during the third quarter of 2023, representing a 115% increase.
Orascom Development Egypt signed a joint loan agreement worth 6 billion Egyptian pounds to finance the “o west” project in West Cairo, with a repayment period of 10 years.
The loan will be used to refinance the previous credit facility obtained by the company, totaling 1.5 billion Egyptian pounds in 2022. It will also be used to finance and accelerate the construction pace of the project’s launched phases.
The company has already started delivering several units in the first phase during 2023 and plans to deliver over 1,000 residential units in 2024.
EFG Hermes acted as the sole financial advisor, lead manager, and bookrunner for Orascom Development, while Commercial International Bank and Bank of Egypt served as the main arrangers for the loan. MHR & Partners, in collaboration with White & Case, acted as legal advisors for Orascom Development.
The “o west” project led by Orascom Development achieved its highest semi-annual real estate sales in its history, reaching 7.5 billion Egyptian pounds with a growth rate of 60%, compared to 4.7 billion pounds in the first half of 2022.
The increase in Orascom Development’s real estate sales was attributed to the rise in average square meter prices in all destinations, as well as an increase in the number of units sold.
By the end of June, Orascom Development’s total revenues reached 6.2 billion Egyptian pounds, representing a 62.2% growth compared to 3.8 billion pounds in the previous year’s first half.
The noticeable increase can mainly be attributed to the accelerated construction activities across all company projects, resulting in real estate revenues of 4 billion Egyptian pounds, a 53.4% increase compared to the first half of 2022. Additionally, there has been significant improvement in the performance of the hotel and city management sectors.
The “O West” project ranked first in new real estate sales for the group during the first half of 2023, accounting for 47.5% of the sales, followed by El Gouna with 38.5% of the sales.
The company succeeded in increasing the average price per square meter in all destinations. The average price per square meter in El Gouna increased by 82.1%, while in O West, it increased by 43.8%.
Orascom’s hotels surpassed pre-COVID-19 levels with a significant leap in the hotel sector, where revenues increased by 118.2% to reach 1.4 billion Egyptian pounds. This was primarily driven by an increase in the average room rates and demand for leisure tourism, along with an increase in occupancy rates in the group’s hotels due to the return of inbound tourism to Egypt.
The company’s profits also grew during the first half of the previous year by 17.2% to reach 1 billion Egyptian pounds, compared to a profit of 858.3 million pounds during the same period of the previous year.
