Orascom Development Holding AG
EQS-Adhoc: Orascom Development Holding AG: records a 22.2% increase in revenues over last year, bottom line, in line with earlier communicated guidance, was impacted by the increase from losses of associates, one time provisions and foreign exchange l...
EQS Group-Ad-hoc: Orascom Development Holding AG / Key word(s): Final
Results/Final Results
Orascom Development Holding AG: records a 22.2% increase in revenues over last
year, bottom line, in line with earlier communicated guidance, was impacted by
the increase from losses of associates, one time provisions and foreign exchange
losses
14.04.2016 / 07:00
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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ODH (Orascom Development Holding") (SIX ODHN.SW), (EGX ODHN.EY) has released its
consolidated financial results for its twelve Months ended 31st of December
2015.
Orascom Development Holding (ODH) records a 22.2% increase inrevenues over last
year, bottom line, in line with earlier communicated guidance, was impacted by
the increase from losses of associates, one time provisions and foreign exchange
losses
Revenues increased by 22.2% to reach CHF 306.1 compared to CHF 250.5 million in
FY 2014.Adjusted EBITDA reached CHF 80.8 million, a 228.5% increase from the CHF
24.6 million recorded in FY 2014.Net loss of CHF 19.0 million mainly impacted by
the increase in ODH's share of losses from Andermatt Swiss Alps (ASA) and
Orascom Housing Communities (OHC).Achieved the net sales target of the year for
our Egyptian subsidiary of CHF 75.0 million. Total contracted sales for the
Group reached CHF 106.3 million compared to CHF 87.6 million in FY 2014.Hotels
segment closed the year positively, with a fall back starting 4Q 2015 as a
result of the aircraft crash in the Sinai peninsula and the continuous travel
bans on Taba, Egypt.Re-negotiating the refinancing package in Egypt, taking a 3
years grace period on principal and interest, to be finalized by Q2 2016.
Altdorf, 14 April 2016 - Orascom Development Holding (ODH) revenues increased by
22.2% to CHF 306.1 million 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.
Adjusted EBITDA, increased by 228.5% to reach CHF 80.8 million compared to CHF
24.6 million in FY 2014 mainly because of the high margins associated with the
land sub-development agreements. During 2015, we signed two new sub-development
agreements to sub-develop 110,196 m2 of land in El Gouna for a total value of
USD 22.0 million.
The net losses attributable to the shareholders 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 Andermatt 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.
Real Estate: Sales witnessed an increase of 21.3% over the same period last year
reaching CHF 106.3 million compared to CHF 87.6 million in FY 2014.
The boost was mainly driven by the significant increase in El Gouna sales
reaching CHF 82.9 million in FY 2015 compared to CHF 48.7 million in FY 2014. In
2015, 4 new diversified projects in El Gouna with a total sellable inventory of
USD 93.4 mn, were successfully launched.
Controlling construction costs and speeding up its progress continues to be our
focuses of the year, which will allow earlier recognition of revenues and
earlier cash collection of the 10% client delivery payment. We are planning to
deliver Joubal lagoon project in El Gouna, launched back in November 2014,
during Q2 2016, 6 months ahead of schedule.
We have reached 75% of construction for the Byoum hotel in Fayoum, and expecting
the opening to be around Q3 2016.
Ongoing efforts were taken in developing our Omani destinations, adding to the
destinations' livelihood to ultimately drive up real estate sales. We handed
over 29 real estate units in Sifah and Salalah, finalizing the construction of
the 9 holes golf course and working on a new marketing and positioning campaign
for Salalah and Sifah.
Demand for our Lustica Bay, Montenegro destination has continued to see pickup
and the project has attracted a host of global buyers. 2015 witnessed the
completion of Lustica's first 10 apartment buildings in the Marina Village,
welcoming Lustica's first residents and commencing the first operational summer
season.
Real Estate segment revenue reached CHF 66.4 million vs. CHF 72.9 million in FY
2014. Total deferred revenue from real estate that is yet to be recognized until
2018 reached CHF 147.0 million in FY 2015 compared to CHF 151.0 million in FY
2014.
Hotels:Completed the 700-room phase I of our hotel development plan in Oman,
with segment revenues increasing by 4.5% to reach CHF 124.2 million (FY 2014:
CHF 118.9 million), yet bottom-line results were negatively impacted by the
plane crash in Egypt during Q4 2015.
In Egypt, the optimization strategies that we applied in 2014 across our hotel
portfolio, and the relatively strong performance of the first 9 months,
contributed to a successful operation of the segment up until September 2015.
Those strategies helped us close the year positively and limited the magnitude
of the challenges that the world's tourism sector has witnessed in 2015
especially after the Russian aircraft incident that took place in October and
the shootings that took place in Paris in November 2015. El Gouna continued to
benefit from its safe haven and has been outperforming its competitors, closing
the year at an occupancy of 68% compared to 60% in 2014. Makadi, operated at 30%
of its capacity, after closing down 2 out of the 3 hotels we own. In Taba, we
took some drastic measures to stop the bleeding of the destination and have shut
down 5 out of the 6 hotels, only keeping the Sofitel hotel open (442 rooms).
Our hotels in Oman witnessed a notable year-on-year growth. Occupancy grew from
33% to 51% and GOP PAR grew from CHF 3 to CHF 18. Salalah Beach, marked the
completion of the 700-room phase one milestone of our Omani hotel development
plan with the opening of Al Fanar Hotel & Residence, a 218-room, four star
hotel. The hotel had its soft launch mid December 2015 with an occupancy of 46%
and is now running at an average occupancy of 81% in Q1 2016. Oman is now home
to 767 rooms representing 10% of the total Group's inventory.
In the UAE, the cut in the number of rooms affected the reported figures. 14% of
the total Cove hotel inventory, was used as a housing facility for the Hotel's
senior staff in replacement of the Housing Complex that was being renovated to
serve as an extension for the Hotel. The new Housing facility was re-opened in
November 2015.
Adjusted EBITDA for the segment was within the same range of last year, reaching
CHF 18.1 million compared to CHF 18.2 million in FY 2014. However, the segment's
profitability was still negatively affected by the ongoing bans in Taba Heights
along with the airplane crash incident. The net losses generated from Taba
Heights hotels alone amounted to CHF 10.7 million.
Subsequent events
The Board of Directors of Orascom Development Holding AG (Orascom Development,
ODH) has signed a six year advisory agreement with Accelero Capital Management
Company Limited ("Accelero Capital") whereby Accelero Capital will provide
advisory services to assist ODH in implementing an operational and financial
turn-around under the guidance of the Board of Directors and management of ODH.
The Board of Directors also announced that it has appointed Mr. Khaled Bichara
as the new CEO effective 1 January 2016.
Outlook for FY 2016
Corporate
After having received approvals from all banks in Egypt on the initial
rescheduling agreement to get a 2 years grace period, the Central Bank of Egypt
issued a new initiative allowing tourism companies to obtain a 3 years grace
period on principal and interest. We are now capitalizing on this initiative and
re-negotiating with the banks to get a better deal which we expect to finalize
by Q2 2016.
Real Estate
We will continue executing our new development strategy, offering a wider range
of products across our destinations. In Egypt, we launched the Fanadir Bay
project, in El Gouna, with a total inventory of USD 60.0 million. We will also
launch new products in Fayoum with a total inventory of USD 3.9 million and are
currently finalizing the design for the Clubhouse in Makadi, to commence
construction by Q2 2016. We are also studying the possibility of entering the
first and second home markets in Cairo and the North Coast. In Oman, we are
revisiting Jebel Sifah's master plan and are planning to introduce two product
types during Q4 2016. We are also planning to start the construction of a new
waterpark in Salalah Beach towards the end of the year with a capacity to hold
up to 1,500 visitors. In Montenegro, we are progressing with the construction of
the main marina works and have commenced on the next group of apartment
buildings (F & G Buildings) and the exclusive Marina Villas. The "F Buildings"
foresees the development of eight new buildings with 45 residential units,
expected to be completed during 2016.
Hotels
On track with the construction of Ancient Sands hotel in El Gouna, and Byoum
hotel in Fayoum, planned to open in Q2 and Q3 2016, respectively. We are
studying the implementation of strict cost cutting measures across our hotels in
Egypt, from centralization of services to suspension of operations at some
hotels. We plan to capitalize on the high potentiality of Oman, especially after
the significant demand that was witnessed during the ITB Berlin conference and
are currently looking to add 80 more rooms in Al Fanar hotel & Residence in
Salalah Beach. In the UAE, we are finalizing the construction of The Cove Rotana
extension, adding 145 rooms to be opened during 2016. Finally in Montenegro, we
are planning for the construction of the Promenade Condominium Hotel, planned to
commence operation during the summer of 2018.
Presentation
The associated financial statements and presentation can be found on Orascom
Developments' websitehttp://www.orascomdh.com/en/investor-relations/financial-pr
esentations.htmlunder the Investor Relations section.
Telephone conference today at 1:30 pm CET
Orascom Development invites you to its FY 2015 results conference call on 14
April 2016 at 1:30 pm CET. The call will start by a presentation from the CEO
Khaled Bichara, the CFO Eskandar Tooma and Chief Hotels Officer Abdelhamid
Abouyoussef, followed by a Q&A session. A registration is not required.
Conference password: 50583489 International: +44 (0)207 192 8000 Switzerland
Toll Free: 0800 920 016 Egypt Toll Free: 0800 000 0798 UK Toll Free: 0800 376
7922 US Toll Free: 1866 966 1396
A replay of the conference call will be available for one week with the
following dial in details: Access Code: # 50583489 International: +44 (0) 1452
55 00 00 UK National : 08717000145 US Toll Free: 1866 247 4222 Available until
21 April 2016
About Orascom Development Holding AG
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 eight jurisdictions (Egypt,
UAE, Jordan, Oman, Switzerland, Morocco, Montenegro and United Kingdom), with a
primary focus on touristic destinations. The Group currently operates eight
destinations; four in Egypt El Gouna, Taba Heights, Makadi and Haram City, The
Cove in United Arab Emirates, Jebel Sifah and Salalah Beach in Oman, and
Andermatt in Switzerland. Orascom Development has a dual listing, with a primary
listing on the SIX Swiss Exchange and a secondary listing on the EGX Egyptian
Exchange.
Contact:
Contact Investor Relations
Sara El Gawahergy
Tel: +202 24618961
Mob: +41 418 74 17 11
ir@orascomdh.com
Contact Media Relations
media@orascomdh.com
End of ad hoc announcement
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14.04.2016 News transmitted by EQS Schweiz AG. www.eqs.com - news archive:
http://switzerland.eqs.com/de/News
The issuer is responsible for the contents of the release.
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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: Foreign Exchange(s) SIX
End of News EQS Group News Service
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