Orascom Development Holding AG
EQS-Adhoc: Orascom Development Holding AG Continues to Deliver on its Strategy and Plans Expansion in Oman and Montenegro
EQS Group-Ad-hoc: Orascom Development Holding AG / Key word(s):
Miscellaneous/Miscellaneous
Orascom Development Holding AG Continues to Deliver on its Strategy and Plans
Expansion in Oman and Montenegro
17-Jan-2018 / 07:00 CET/CEST
Release of an ad hoc announcement pursuant to Art. 53 KR
The issuer is solely responsible for the content of this announcement.
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Press Release
Orascom Development Holding Continues to Deliver on its Strategy and Plans
Expansion in Oman and Montenegro
Altdorf, 17 January 2018- In June 2016, Orascom Development Holding AG (Orascom
Development) announced that the future strategy will be anchored on three
imperatives: enhancing operational performance, strengthening the balance sheet
as well as repositioning and enhancing the Orascom Development brand.
These strategic guidelines have been successfully implemented with the following
achievements:
- On 25 May 2017, Orascom Development has successfully completed the delisting
of the company's Egyptian Depositary Receipts (EDRs) from the EGX.
- The operational performance across the Group was enhanced in 2017, highlighted
by an increase in real estate net sales value to reach CHF 125.4mn in FY 2017
vs. CHF 115.2mn in FY 2016 resulting from multiple new launches across our
destinations. In El Gouna, Egypt net sales figures for the year remained stable
in CHF despite of the 50% devaluation of the EGP against the CHF, and the two
destinations in Oman, Hawana Salalah and Jebel Sifah, recorded an increase of
53% in their sales value in 2017 compared to 2016.
- The expansion plans across the hotels segment was continued and 265 rooms in
the Gulf hotels were added during 2017. 120 new hotel rooms in Hawana Salalah,
Oman were opened in December 2017 recording an occupancy rate of 93% in the
first week of operation and 145 new rooms in The Cove, UAE were opened in May
2017 recording an occupancy rate of 70% in December 2017.
- El Gouna, Egypt continued its leading market position within the Egyptian
tourism industry. The new hotel management strategy introduced in January 2017,
coupled with the start of renovation of six hotels triggered a boost in
operational efficiency, leading to higher occupancy and room rates.
- Several amenities were added under the destination management segment bringing
more life to the destinations and further sharpening their positioning.
In 2018, Orascom Development will further advance its growth plans in Oman and
Montenegro, building on the successful returns that were achieved last year and
adding more hotel rooms and amenities in both destinations. We are currently
finalizing the construction of the Chedi hotel, the Marina and retail outlets in
Montenegro, all planned to be launched in the summer of 2018. We are also
planning to add more rooms and a new hotel in Hawana Salalah, Oman. The
financing of these planned expansions will be secured through different mid to
long term financing instruments that are being evaluated at both the Group and
the destination level. Accordingly, the Group will enter in discussions with
certain financial intermediaries and capital providers regarding the potential
issue of public or private fixed income financing instruments.
At the same time, Orascom Development will continue to seek an optimal balance
sheet structure and will continue its plans to reduce and restructure the debt
held at the Egyptian subsidiary level. The Egyptian subsidiary debt was reduced
by CHF 52.5mn (EGP 883mn) and for 2018 it is planned to reduce the balance by a
further CHF 44.2mn to CHF 55.2mn (EGP 800mn to EGP 1.0bn) through the sale of
non-core assets and excess cash from operations.
CEO Khaled Bichara commented: "2017 was a year of change, transition and growth.
We have diligently worked to embed a culture of ownership across the company
under the destination-based model, which yielded successful operational and
financial results. In 2018, we will continue to wisely invest our capital to
drive growth, and prioritize our time and resources to build a stronger and
sustainable organization."
Orascom Development will announce its FY 2017 results on 5 April 2018.
About Orascom Development Holding
Orascom Development is a leading developer of fully integrated destinations that
include hotels, private villas and apartments, leisure facilities such as golf
courses, marinas and supporting infrastructure. Orascom Development's
diversified portfolio of destinations is spread over seven jurisdictions (Egypt,
UAE, Oman, Switzerland, Morocco, Montenegro and United Kingdom), with primary
focus on touristic destinations. The Group currently operates ten destinations;
five in Egypt (El Gouna, Taba Heights, Fayoum Makadi, and Harram City), The Cove
in the United Arab Emirates, Jebel Sifah and Hawana Salalah in Oman, Luštica Bay
in Montenegro and Andermatt in Switzerland. The shares of Orascom Development
Holding are listed on the SIX Swiss Exchange.
Contact for Investors:
Sara El Gawahergy
Head of Investor Relations
Tel: +202 246 18961
Tel: +41 418 74 17 11
Email:ir@orascomdh.com
Contact for Media Relations:
Philippe Blangey
Partner
Dynamics Group AG
Tel: +41 432 68 32 35
Email:prb@dynamicsgroup.ch
Disclaimer & Cautionary Statement
The information contained in this e-mail, its attachment and in any link to our
website indicated herein is not for use within any country or jurisdiction or by
any persons where such use would constitute a violation of law. If this applies
to you, you are not authorized to access or use any such information. Certain
statements in this e-mail and the attached news release may be forward-looking
statements, including, but not limited to, statements that are predications of
or indicate future events, trends, plans or objectives. Forward-looking
statements include statements regarding our targeted profit improvement, return
on equity targets, expense reductions, pricing conditions, dividend policy and
underwriting claims improvements. Undue reliance should not be placed on such
statements because, by their nature, they are subject to known and unknown risks
and uncertainties and can be affected by other factors that could cause actual
results and Orascom Development Holding's plans and objectives to differ
materially from those expressed or implied in the forward-looking statements (or
from past results). Factors such as (i) general economic conditions and
competitive factors, particularly in our key markets; (ii) performance of
financial markets; (iii) levels of interest rates and currency exchange rates;
and (vii) changes in laws and regulations and in the policies of regulators may
have a direct bearing on Orascom Development Holding's results of operations and
on whether Orascom Development Holding will achieve its targets. Orascom
Development Holding undertakes no obligation to publicly update or revise any of
these forward-looking statements, whether to reflect new information, future
events or circumstances or otherwise. It should further be noted, that past
performance is not a guide to future performance. Please also note that interim
results are not necessarily indicative of the full-year results. Persons
requiring advice should consult an independent adviser.
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End of ad hoc announcement------------------------------------------------------
Language: English
Company: Orascom Development Holding AG
Gotthardstraße 12
6460 Altdorf
Switzerland
Phone: +41 41 874 17 17
Fax: +41 41 874 17 07
E-mail: ir@orascomdh.com
Internet: www.orascomdh.com
ISIN: CH0038285679
Valor: A0NJ37
Listed: SIX Swiss Exchange
End of Announcement EQS Group News Service
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645617 17-Jan-2018 CET/CEST