Equity Analysis /

Orascom: Bottom line and margins expand on MENA operations; awards momentum a key concern; OW on FV of EGP200

    Tellimer Research
    22 May 2018
    Published byTellimer Research
    We reiterate our Overweight recommendation on FV of US$11.4/EGP200. We factor in 1) FY 18 EBITDA of US$229mn, 2) attributable net income of US$102mn, and 3) MENA operations to contribute 66% to revenues. We expect US EBITDA margins to improve to 2% post the completion of Natgasoline, which should be felt in H2 18. OC is currently trading at FY 18 PE of 9.7x and EV/EBITDA of 4.7x.