Q2 2024 Orascom Development Egypt SAE Earnings Call Transcript
Key Points
- Orascom Development Egypt SAE (CAI:ORHD) reported a 25% increase in revenues for Q2 2024 compared to the same period last year.
- Adjusted EBITDA rose by 69% and net profits increased by 54% for the same period, indicating strong operational performance.
- Real estate sales for the first half of 2024 were up nearly 60%, providing a healthy deferred revenue balance.
- The hotel segment saw an 8% increase in revenues and a 13% rise in operating margin despite geopolitical challenges.
- The company successfully monetized CHF230 million over a two-year period through strategic land sales and asset transactions.
- The company faced a negative impact from the devaluation of the Egyptian pound, affecting year-to-date net profits.
- Finance costs increased due to a 6% rise in Egyptian debt rates and additional withdrawals for construction projects.
- The geopolitical situation in Gaza led to the mothballing of the Taba destination, impacting hotel revenues.
- The O West project saw an 18% decline in contracted units sold, attributed to local market dynamics and devaluation effects.
- The company's stock performance has not aligned with its operational success, prompting discussions on improving stock liquidity and shareholder engagement.
Hello, everyone, and thank you for dialling in. This is Sara Boutros from CI Capital Reasearch team. We're happy to be hosting today ODE's 2Q '24 results conference call. From the management team, we have with us Omar Hamamsy, CEO; Ashraf Nessim CFO; and Ahmed Abou El Ella, IR Director. As usual, we will start off the presentation by the management team and then we will open the floor for questions.
I will now hand over the call to Omar for the presentation. Go ahead.
Thank you, Sara. Thank you. Good afternoon, everyone, and very happy to be with you. To talk you through how we did over the last three months in the second quarter of 2024. Another very strong quarter for Orascom Development, one that we're very excited about building on the back of a very strong year 2023. Building on the back of a very challenging environment in the first quarter of 2024, where we had a major devaluation in one of our major markets, the Egyptian
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