Orascom Construction Industries (OCI) announced that its subsidiary, Orascom Saudi Limited Company, has concluded negotiations for the award of infrastructure contracts worth a combined value of $420 million in Saudi Arabia.
The projects should be executed in several locations in the Kingdom, OCI said in a press release. OCI is currently executing approximately $790 million worth of work in Saudi Arabia.
"These contracts reflect the OCI Construction Group’s on-going commitment to expand our Saudi Arabian operations. We are well positioned to continue to grow our Saudi Arabian backlog by capitalising on our strong track record in executing large-scale infrastructure projects in Saudi Arabia," said Osama Bishai, OCI Construction Group Chief Operating Officer.
OCI expects to formally sign the contracts in the coming weeks.
"This marks the first sizable contract announced to date and should reflect on the company’s operations during the second half of 2013," Beltone financial commented in a note.
It added that OCI has been focusing on expanding its footprint across the Kingdom to diversify the construction group’s backlog and reduce presence in countries facing political instability, such as Egypt.
Saudi Arabia’s contribution to the total backlog stood at 12.3 percent as of December 2012.