Egypt’s Orascom Development turns into losses of $23mn in FY 2015

Egypt- based Orascom Development Holding (ODH) has turned into loss during fiscal year 2015 to incur net losses of 22.5 million Swiss francs ($23million), yet it has achieved net profit of 36.1 million Swiss francs($37.3 million) in FY 2014 according to its released consolidated financial results.

On the other hand, ODH  revenues has increased by 22.2 percent to  record CHF  306.1 million in FY 2015  compared to CHF 250.5 million in FY 2014.

The increase in revenues was mainly driven by  the  positive  contribution  of  the  Group’s  largest  subsidiary,  Orascom  Hotels  and  Development (OHD),  the  new  hotel  opening  in  Oman  and  the  delivery  of  the  first  10  apartment  buildings  in Montenegro.

While, the net losses was attributed to the share holders of the company reached CHF 19.0 million, the main contributors  to  the  bottom line  losses  include:  (I)  the  increase  in  ODH’s  share  of  losses  from Ander matt Swiss Alps (ASA) and Orascom Housing Communities (OHC), the Group’s largest associate (non consolidated) companies; (ii) the decrease in the profitability of the hotel’s segment in Egypt as a result of the continued travel bans on Taba and the negative consequences of the plane crash in the Sinai Peninsula. (iii) Prudence related additional one time provisions (IV) and foreign exchange losses due to weakening of the CHF and the devaluation of the EGP.