MENA-2 Tuesday Morning Round-Up 06 September 2011 X Inbox X

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MENA-2 TUESDAY MORNING ROUND-UP
Egypt
OCIs 2Q2011 earnings hit by higher tax rate in Egypt, in line with estimate
Elsewedy Electric to distribute 30% stock dividend; ex-date on 12 September 2011
Finance Minister El-Beblawi proposes maximum salaries for civil servants
Egypt builds wall around Israeli embassy in Cairo
Army to end military trials of civilians when emergency law ends
Scuffles disrupt Mubarak trial, as police officials testify
Agenda
Egypt
Tue 6 September >> Orascom Construction Industries (OCI) 2Q2011 results
Sat 10 September >> Ezz Steel AGM
Mon 12 September >> Maridive EGM regarding 1:6 bonus shares
Egypt News
OCIs 2Q2011 earnings hit by higher tax rate in Egypt, in line with estimate
Orascom Construction Industries (OCI) [OCIC.CA] reported today 2Q2011 results, with its net income dropping 20% Q-o-Q to USD165 million (+15% Y
25% from 20% weighed on 2Q2011 earnings, which also included a retroactive charge of 5% for 1Q2011earnings, as well as a one
Operationally, revenues surprised positively across the board, coming 9% ahead of our estimate. Fertiliser margins were in line but a stronger
only 5% ahead of our estimate.
Consolidated revenue was USD1.47 billion (+17% Q-o-Q), 9% ahead of our forecast. We estimate construction revenue was USD868 million, a 22% jump Q
million, also ahead of our estimate of USD547 million and up 11% Q-o-Q.
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EBITDA of USD361 million (+8% Q-o-Q) was 5% ahead of our estimated USD342 million, mainly on the higher-than-expected top line. Stronger
than-forecast margins realised in 2Q2011 to 13% (versus our expectation of 14.9%). We expected construction EBITDA margins to drop
the current market conditions. On the other hand, we believe 1Q2011 fertilisers margin was 40.9% in line with our estimate,
to fertiliser prices, with the strongest growth in margins at OCIs low-cost Egyptian subsidiaries. Higher margins Q-o-Q at EFC and EBIC, however, seem to have been partially offset by
mainly as the rise in ammonia feedstock prices has surpassed the Q-o-Q increase in nitrate prices, as we had expected.
OCI announced an interim cash dividend of USD1.10 per share to be paid during 4Q2011, bringing total cash dividends paid during the calendar year 2011 to USD2.1
share for the year.
In the press release, OCI announced that it is commencing a process to change its legal status to a Law 95 Holding Company. The proposal will be shortly put
(EGM). After the EGM approval, the proposal will require the approval of the Egyptian Financial Services Authority (EFSA) and the Investment Authority.
into two separate legal structures under the umbrella of the proposed holding company. (Company Disclosure, Ahmed Shams el Din, Rita
Orascom Construction Industries: EGP244.33, Rating: Neutral, FV: EGP265.00, MCap: USD8,565 million,OCIC EY / OCIC.CA
Elsewedy Electric to distribute 30% stock dividend; ex-date on 12 September 2011
Elsewedy Electric (SWDY.CA) announced the distribution of a 30% stock dividend at a ratio of 3:10. The ex-dividend and distribution date for the
companys number of shares will increase to 223.42 million from 171.86 million. Our fair value will be adjusted on the ex-dividend date to
Elsewedy Electric: EGP28.57, Rating: Buy, FV: EGP49.00, MCap: USD824 million, SWDY EY / SWDY.CA
Finance Minister El-Beblawi proposes maximum salaries for civil servants
Finance Minister Hazem El-Beblawi proposed to the cabinet that the government set a wage ratio of 36 to 1 between all top managerial positions in the public sector
for FY2011-2012, the proposed maximum wage stand at EGP25,200 (USD4,221). Since taking office last March, the cabinet of Prime Minister Essam Sharaf
fend off public criticism that managers are overcompensated. (Al Ahram)
Egypt builds wall around Israeli embassy in Cairo
Egypt has walled off Israels embassy in Cairo after tensions between the two countries sparked a series of angry protests that reached a climax last month when a
As work began on the wall a few days ago, many Egyptians gathered nearby to show their displeasure. Some sprayed The people want the fall of the wall
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was to protect other residents of the high-rise embassy building, not the Israeli mission. The goal... is to protect the lower floors of the
-Youm quoted local Governor Ali Abdel-Rahman as saying. (Reuters)
Army to end military trials of civilians when emergency law ends
Egypts army will stop trying civilians in military courts when it scraps the countrys decades-old emergency law, a top general said on Monday, as activists
weekend. Rights groups say that Egypts army rulers have used military courts to imprison as many as 14,000 civilians as they try to deal with
say that the military trials are a temporary but necessary measure to deal with a wave of disorder and an increase in criminality
that civilians will no longer be tried in military courts after the emergency law is lifted, the official news agency MENA reported. Morsy said that 11,879 civilians were tried in
2011. (Reuters)
Scuffles disrupt Mubarak trial, as police officials testify
Police officers testifying at the trial of Hosni Mubarak said on Monday that they were not aware of orders to shoot at protesters, as scuffles erupted inside and
ousted Egyptian president. Protesters outside the Cairo court scuffled with police and voiced anger at the pace of the trial.
given to use live ammunition against protesters, General Hussein Saeed Mohamed Moussa, Head of Communication at the Interior
the Interior Ministry and prisons from attack. Three other senior officers testified. Two said that the orders were to show self restraint
What is happening today is a mockery. All the witnesses that came are not here to give testimonies of evidence, said Mabrouk Zidan, a lawyer representing
prosecution is complicit. They are going to get an innocent verdict, he told Reuters inside the courtroom, echoing comments by some other lawyers.
One million tonne shortage in local fertiliser industry this summer
Fertiliser companies in Egypt have produced 16 million tonnes this summer, al-Masry al-Youm quoted fertiliser traders as saying. Companies in the free zone
companies produced the remaining 8 million tonnes and sold them locally. On the other hand, local fertiliser consumption reached 9 million tonnes,
EGP3,600/tonne. (Al-Masry al-Youm)
[Note EFG Hermes is not responsible for the accuracy of news items taken from other media.]
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