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Key Points
- Orascom Construction declares $24.25 million interim dividend, highlighting its commitment to shareholders amid economic challenges.
- BESIX subsidiary posts record $8.6 billion backlog, up 50.1% year-on-year, underscoring Orascom’s strong operational performance and market expansion.
- The Sawiris family holds majority control, with Nassef Sawiris’ 28.97% stake set to yield a $7.03 million dividend.
Orascom Construction, the Cairo-based construction giant controlled by Egypt’s wealthiest family, the Sawiris family, has announced an interim dividend payout of $24.25 million to shareholders. This move underscores the company’s resilience and ongoing commitment to supporting shareholders, even in the face of economic challenges in its key markets.
The dividend announcement follows a resilient financial performance for the first nine months of 2024, with Orascom reporting $2.32 billion in revenue, marking a slight dip of 1.92 percent compared to $2.37 billion the previous year. The decrease was driven by a 19.98 percent drop in MENA revenue, which fell to $1.08 billion and now accounts for 47 percent of total revenue.
In contrast, BESIX, Orascom’s key subsidiary, reported a significant €8.1 billion ($8.6 billion) backlog, a 50.1 percent increase year-on-year. Adjusted EBITDA reached $119.4 million, with adjusted net income of $86.3 million, demonstrating robust operational performance.
Orascom's interim dividend set for January 15
Orascom Construction’s disciplined financial management and resilient operations have enabled it to navigate economic pressures while continuing to deliver value to shareholders. The company’s focus on growing its backlog and diversifying its geographic presence remains crucial to its long-term growth and sustainability.
The declared interim dividend of $0.22 per share, totaling $24.25 million, will be paid to shareholders on Jan. 15, 2025. Payments will be made in U.S. dollars to NASDAQ Dubai shareholders and in Egyptian pounds to those listed on the Egyptian Exchange, based on the prevailing exchange rate set by the Central Bank of Egypt on Dec. 30, 2024.
Egypt’s richest man, Nassef Sawiris, benefits from Orascom dividend
Orascom Construction, a leader in engineering and construction, continues to strengthen its presence across the Middle East, Africa, and the U.S., positioning itself for continued success. The company’s steadfast dividend policy underscores its strong cash flow generation and enduring commitment to rewarding shareholders, even amidst challenging market conditions.
Founded in 1976 by the late Egyptian tycoon Onsi Sawiris, Orascom Construction remains under the control of the Sawiris family. Their private investment arm, OS Private Trust Company, holds a 51.8 percent stake, with Nassef Sawiris, Egypt’s richest individual, owning 28.97 percent of the company. This gives him a $7.03 million share of the dividend payout.
With a record-high backlog and growing international operations, Orascom is confident in its future growth and its ability to create long-term shareholder value. This latest dividend declaration highlights the company’s belief in its operational strength and strategic direction as it expands its global footprint.
