Orascom Development earns 858.3 million pounds in the first half

Orascom Development Egypt’s profit during the first half of 2022 increased by 15.3% to 858.3 million pounds, compared to a net profit of 744.6 million pounds during the same period last year.

The company’s revenue during the period increased to 3.8 billion pounds by the end of June 2022, compared to revenue of 3 billion pounds during the same period last year.

The company achieved 4.7 billion pounds in property sales during the first half of 2022, an increase of 16.9%, which is the highest half-yearly sales achieved in the company’s history.

Orascom Development Egypt has revealed the real estate sales and hotel sector performance indicators for the company during the first half of 2022.

The company achieved sales of EGP 4.7 billion during the first half of this year, an increase of 16.9% compared to the first half of 2021.

The value of sales for the second quarter was 2.7 billion pounds, an increase of 39.4% compared to 1.9 billion pounds during the second quarter of 2021, due to the increased demand for property units in O West, complemented by strong sales momentum in El Gouna.

In El Gouna, property sales rose to 1.1 billion pounds in the second quarter of 2022, an increase of 8.6% compared to 1 billion pounds during the same period last year. Real estate sales in El Gouna therefore amounted to approximately 2 billion pounds during the first half of 2022.

2.4 billion pounds in sales from the “O West” project in the first half

At O West, the project continued to confirm its leading position in West Cairo as property sales rose to 2.4 billion pounds during the first half of 2022, an increase of 73.6% compared to 1.4 billion pounds during the same period last year.

Litigation behind the decline in “Makadi Heights” sales to 304.4 million pounds

As for Makadi Heights, net property sales during the first half of 2022 amounted to 304.4 million pounds (first half of 2021: 583.9 million pounds).

The reason for the decline in sales is due to the slow pace of sales in the project until the resolution of the Makadi Heights land issue with the Tourism Development Authority, which was resolved in favor of the company last month.

The company was able to increase the average price per square meter in all destinations. The average price per square meter in El Gouna increased by 14.4%, in O West by 28.8% and finally Makadi Heights by 25.2% compared to the average price per square meter during the first half of 2021.

Performance indicators of the hotel sector during the first half

The proven business model of the Group’s hotels once again delivered impressive quarterly results despite various economic and political challenges around the world. The performance indicators for the second quarter of 2022 reflect the positive impact of the return of foreign tourism, as occupancy levels and the price of rooms sold increased year on year. Our hotels in El Gouna and Taba Heights benefited from the improved performance of Egypt’s tourism sector.

Occupancy during the second quarter of 2022 reached 72% in El Gouna and 23% in Taba respectively. The occupancy rate reached 66% in El Gouna and 16% in Taba during the first half of 2022. On the other hand, foreigners represented approximately 75% of the total occupancy rate in El Gouna during the second quarter of 2022 and 72% of the total occupancy rate over the first half from 2022.

The company launches The Nines project in “El Gouna” with a property inventory of $60 million

El-Hamamsi: Addition of a new real estate stake worth $25.9 million in El Gouna projects

Orascom Development focuses on developing its land portfolio in 7 countries, implementing an expansion strategy in line with its goals, and recently launched The Nines project in El Gouna with a total property inventory of $60 million.

The Stock Exchange held a dialogue with Omar El-Hamamsi, CEO of Orascom Development Company, to learn more about the company’s expansion plans and the impact of economic changes on its plans.

Al-Hamamsi said that the 2022 financial year began with difficult economic challenges and turbulence at the global and local level due to the Russian-Ukrainian conflict, which coincided with the repercussions of the global pandemic and the jump in energy prices, which led to a worldwide inflationary wave.

The global economic repercussions of these factors prompted the Central Bank of Egypt to raise interest rates by 100 basis points, and Egypt also reduced the value of its local currency against the dollar by approximately 14%.

The opening of the first sales office for “Orascom Development” in Dubai to increase real estate exports

Al-Hamamsi added that Orascom Development is characterized by the distribution of its business in 7 countries, and it monitors the real estate markets with great caution, and despite the company’s management being prepared for all scenarios, he does not see what it takes to the company’s basic business plans so far.

He emphasized that the company looks at the current situation in a positive way, and works to exploit all available opportunities, and recently opened the first global sales office for Orascom Development Holding in Dubai with the aim of contributing to real estate exports.

He pointed out that despite the ambiguity of the global economic situation, Orascom Development was able to overcome many crises faced by the local and global economies, and trust in local policies and decisions, which was able to withstand global challenges, and currently there are no indications of a major disruption in the company’s business.

He said that Orascom Development Holding’s strategy currently focuses on the development of the integrated cities it owns, especially since each city is at a different stage of development, and every year a new territory is offered to establish new projects.

Al-Hamamsi added that in the second quarter of 2022, a new real estate project “The Nines” overlooking the golf courses with a total inventory of approximately $60 million was launched in El Gouna, indicating remarkable progress in the construction work of the second phase of the project, as the construction of the second phase of the project has been completed. Construction operations to deliver more than 200 units during the first half of 2022.

He said that the company continues to accelerate the construction operations of the O West project, and has completed the construction of 444 units, started the construction of 864 apartments, and laid the foundation stone for the construction of O West Club, and the company began construction. during the second quarter of 2022, and it is expected to be completed by the third quarter of next year Partial opening of the club.

Property sales for the city “o west” rose to one billion pounds during the first quarter of 2022, an increase of 31.1 percent, compared to 774.4 million pounds during the corresponding period last year, and total income increased by increased 29.9%. to reach 1.7 billion pounds.

He added that Orascom Development is developing its cities and equipping them with infrastructure such as schools, hospitals, clubs and other services, as the O West city includes an educational district, and the company pays great attention to the educational district give, to provide high quality education, and create an integrated community through specialized partnerships.

O West has 5 schools with advanced and different curricula (German, English, Egyptian), and the opening of a new school in Makadi Heights will be announced soon.

Al-Hamamsy said: “The first quarter witnessed an increase in property sales led by O West, which focuses on the first (basic) housing, as well as an influx of funds from Egyptians living abroad and contributing to the increase in real estate. sales, and all these indicators are supported by the efforts of the Egyptian government to maintain the stability of economic conditions, make us cautiously optimistic.”

He pointed out that Orascom Development added a new property stake in El Gouna, worth $25.9 million, in the “Shedwan” and “Cyan” projects.

He said that the hotel sector of the group, while continuing to reduce the pace of precautionary measures and the return of the possibility to book hotels by 100%, the company was able to achieve positive results in the hotel sector in the first quarter of 2022. , and revenue rose by 173.7% to reach 260.6 million pounds, supported by a recovery and return of movement International travel.

The sector recorded a remarkable growth in all the main operating performance indicators compared to the same period last year, despite the spread of the “Omicron” mutant during the first two months of 2022 and then the escalation of the conflict between Russia and Ukraine, which negatively affected tourism in general.

El Hamamsy said that Egyptians represent more than 46% of the total occupancy rate in El Gouna hotels, and foreigners represent 54% of the total occupancy rate, depending mainly on Western European markets, especially Germany, Belgium, France, the Netherlands, the United States. Kingdom and Switzerland, as the company’s main foreign tourism markets.

The balance of loans recorded around 3.8 billion pounds in the first quarter of 2022

He explained that Orascom Development took some measures to maintain its financial indicators, in addition to the immediate implementation of cost-saving and liquidity-saving measures, which led to the achievement of total operating profit of approximately EGP 110 million in First quarter From 2022, an increase of 11.3 times over the comparable period last year, and the group’s hotels benefited from the increased demand for travel, which led to an increase in the number of foreign tourists, in addition to an increase in domestic discussions.

He said that the company continued to work on improving the financial position and monitoring cash flow, bringing its cash balance to 3.2 billion pounds in the first quarter of 2022, an increase of 4 ,1% above the cash balance for the same period in 2021.

The balance of loans amounted to 3.8 billion pounds in the first quarter of 2022, and the increase in loans is mainly due to the depreciation of the Egyptian pound against foreign currencies, and cash flow during the first quarter of 2022 was 224.2 million pounds.

Al-Hamamsi explained that the company’s land portfolio covers 101 million square meters in 7 different countries, 50% of which is in Egypt, and there is no intention to buy or sell land, as the company’s strategy is still on current cities focus, while developing untapped areas.

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