Egypt's Orascom Construction optimistic for full year

Orascom Construction (OCI) expects a surge in fertiliser prices to spur a rebound in earnings this year after Egypt's biggest company by market value reported a fall in first quarter net income.

OCI, which plans to split its construction and fertiliser businesses into two new companies, has benefited from infrastructure growth across the Middle East despite economic turmoil at home.

But lower sales volumes and a drop in prices at its fertiliser business contributed to a 54 percent fall in first quarter net income.

"Our first quarter results have been impacted by lower selling prices for ammonia and melamine," Chairman and Chief Executive Officer Nassef Sawiris said, referring to the fertiliser business.

"We think this is a temporary matter because in April and May, prices recovered. Today in June, ammonia prices are about 50 percent higher than what they were in February," he told Reuters in an interview.