Orascom Development reports 3Q loss

Orascom Development was hit by political turmoil in the third quarter and reported a net loss of 3 million Swiss francs on Wednesday after a profit of 29 million in the year-earlier period. The loss for the full nine months was 19 million Swiss francs after a 76 million net profit the year before. Revenue in the same time fell from 380 million to 163 million francs, with hotel revenue tumbling from 140 million to 84 million and real estate and construction revenue dropping from 172 million to 41 million. “The negative impact of the political and economic upheavals in Egypt and the Arab World continued to negatively affect the results of Orascom Development,” the company said in a statement.

The civil upheavals that led to the forced step-down of Egypt's president Hosni Mubarak was followed by a slump in investment activity and legal challenges to the sale of property. Moreover, Orascom executive chairman Samih Sawiris had been sentenced to two years in jail in August for alleged stock price manipulation. However, he denied all charges and questioned the legal process. He was later released after having reached a settlement with the court.