Egypt unrest pushes Orascom Development into loss

Swiss-listed Egyptian property and hotels group Orascom Development on Friday reported a full-year net loss of 69.7-million Swiss francs, due to the political turmoil in Egypt and elsewhere in the Arab world last year.

The firm, known mostly for building luxury resorts, took extraordinary charges in 2011 of 82.8 million francs, which included provisions, revaluation of investment properties, and legal fees connected to the political events in Egypt.

Orascom Development made a profit of 94.9 million francs in 2010, after minority interests.

Following the civil uprising that unseated Egypt’s president in February 2011, a slump in investment and legal challenges to state land sales have thrown the real estate sector into turmoil. An exodus of tourists has also made life tough for resort developers.

Slowdown in demand
Orascom Development said revenues in its hotels segment fell 29% due in part to one month of virtually zero occupancy in Egypt’s El Gouna and Taba Heights during the first quarter of 2011 and also because guests traded down from five-star to four-star hotels.

It also said its real estate and construction segment revenues fell 71% due to a 50-day halt in construction activities in Egypt and a slowdown in demand for homes.

“Uncertainties regarding the political progress in the MENA (Middle East North Africa) region, the global economic development and international credit markets continues. Nevertheless, Orascom Development expects a more dynamic development in the second half of the year,” the firm said in a statement.

The firm said credit agreements of 125-million francs finalised in January would enable it to finance all its planned activities for 2012, but did not detail the plans. — Reuters

Staff Reporter
Guest Author

Salie-Hlophe accuses Goliath of lying and racism

In response to Goliath’s gross misconduct complaint, Salie-Hlophe says Goliath has ‘an unhealthy obsession with my marriage’

Miners speak out against Sibanye

Not a year into buying Lonmin, Sibanye is accused of mistreating the mineworkers who were injured eight years ago during the Marikana massacre. But the platinum giant says it is a miscommunication. Athandiwe Saba and Paul Botes visit Marikana to find out the truth

‘There were no marks on his neck’, Neil Aggett inquest...

The trade unionist’s partner at the time he was detained at John Vorster Square says she now believes his death was not a suicide

Press Releases

Boosting safety for cargo and drivers

The use of a telematics system for fleet vehicles has proved to be an important tool in helping to drive down costs and improve efficiency, says MiX Telematics Africa.

Silencing the guns and firearms amnesty

Silencing the guns and firearms amnesty

Gender-based violence is an affront to our humanity

Gender-based violence is an affront to our humanity

UK-Africa investment summit 2020: Think Africa Invest SA

UK-Africa investment summit 2020: Think Africa Invest SA

MTN unveils TikTok bundles

Customised MTN TikTok data bundles are available to all prepaid customers on *136*2#.

Marketers need to reinvent themselves

Marketing is an exciting discipline, offering the perfect fit for individuals who are equally interested in business, human dynamics and strategic thinking. But the...

Upskill yourself to land your dream job in 2020

If you received admission to an IIE Higher Certificate qualification, once you have graduated, you can articulate to an IIE Diploma and then IIE Bachelor's degree at IIE Rosebank College.

South Africans unsure of what to expect in 2020

Almost half (49%) of South Africans, 15 years and older, agree or strongly agree that they view 2020 with optimism.