Orascom Reports First Profit Since 2010 as Egypt Unrest EasesPatrick Winters
Orascom Development Holding AG, the Swiss builder and hotel operator majority owned by Egypt’s Samih Sawiris, reported its first six-monthly profit since 2010 as easing Egyptian political turmoil helped boost sales of real estate.
Net income through June was 31.5 million francs ($34.4 million) compared with a 48 million-franc loss a year earlier, also helped by lower costs, the company said in a statement today. Sales rose 2 percent to 120.6 million francs.
International and domestic confidence in Egypt’s stability has been boosted by the presidential inauguration in June as well as upcoming parliamentary elections that have clarified the path to reforms, Orascom said. That may also bode well for international companies doing business in the country such as Lafarge SA, the Paris-based cement maker that’s merging with Holcim Ltd.
After working through a period of unrest, Orascom’s management is now capitalizing on Egypt’s improved economic and political outlook, the company said.
Orascom expects bookings at its luxury hotels such as at the Taba Heights resort will recover in the second half after most travel bans to the Sinai Peninsula and general travel warnings on the Red Sea area were lifted by Western European countries at the start of the period.