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.
