Orascom Development Holding AG Provides Earnings Guidance for 2016
April 04, 2017 at 01:00 am
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Orascom Development Holding AG provided earnings guidance for 2016. In 2016, the Group witnessed enhanced operational performance from the Real Estate and Hotels business segments across El Gouna, Oman and Montenegro. The company expects to report revenues of CHF 235-240 million, a 21-23% decrease in its consolidated revenues for Fiscal Year 2016 compared to the previous year which included land sales revenues of CHF 65.2 million. The two main business segments of the Group (Hotels and Real Estate) recorded better operational results than in the previous year. The 102.7% appreciation of the U.S. Dollar against the EGP from 8.88 to 18.0 resulted in substantial revaluations of the debt held in US Dollars at the subsidiary and subsequently negatively impacted the Groups profit and loss statement with a non-cash foreign exchange loss of approximately CHF 125.0 million. Further, the Group's results were also impacted by impairments in the amount of approximately CHF 32.0 million after the floatation of the Egyptian Pound. As a result, Orascom Development Holding expects to report a net loss attributable to the shareholders in the range of CHF 195-205 million for Fiscal Year 2016. On the other hand, total debt of the Egyptian Subsidiary on the balance sheet of the Group has decreased by 24% from CHF 414.7 million to CHF 315.2 million. It is important to note that when results are normalized for land sales, FX and impairments in both comparative periods, the Adjusted EBITDA would have reached approximately CHF 19.6 million compared to CHF 15.6 million in fiscal 2015.
Orascom Development Holding AG is a Switzerland-based company engaged in the real estate sector. Through its subsidiaries, the Company develops and manages integrated towns, including hotels, private villas and apartments and leisure facilities, such as golf courses, marinas and supporting infrastructure. The Company operates through four segments: Hotels, which involves provision of hospitality services in Company-owned hotels; Real Estate and Construction, which includes acquisition of undeveloped land and building of real estate; Land Sales, which comprises the Company's land transactions, and Destination Management, which provides facility and infrastructure services at operational resorts and towns. The Company operates more than 30 hotels and controls approximately 101 million square meters of land. Its portfolio includes touristic destinations in Egypt, the United Arab Emirates, Jordan, Oman, Switzerland, Morocco, Montenegro and the United Kingdom.