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Orascom DH: the Egyptian subsidiary suffers a setback

The coronavirus pandemic and the hotel closures that began in March weighed on the accounts.

The Egyptian subsidiary of the hotel and real estate group Orascom DH recorded a drop in turnover and operating profit in the first half of the year. The coronavirus pandemic and the hotel closures that began in March weighed on the accounts.

The half-year turnover of Orascom Development Egypt fell by almost 18% to 2.3 billion Egyptian pounds (about 131.6 million francs). Adjusted EBITDA operating profit fell 27% to £ 560.6 million, the company said Thursday evening. The closure of hotels in March (March 19 to May 15) and the interruption of international flights until July 1 weighed on the results.

Half-year net profit decreased to 168.4 (393.8) million Egyptian pounds. The fall of the national currency weighed negatively to an amount of 26.6 million, against a positive effect of 153.4 million pounds a year earlier.

The company claims to have a healthy balance sheet and takes care to safeguard its liquidity. These increased with the sale of buildings and land, to 1.42 from 1.13 billion Egyptian pounds.

The parent company Orascom DH publishes its half-year results on August 19.

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