Description
SWOT ANALYSIS OF ORASCOME CONSTRUCTION
Orascom Construction
Parent Company
Orascom Construction
Category
Construction Services
Sector
Real Estate and Construction
Tagline/ Slogan
Excellence in every aspect
USP
World leader in the fertilizer industry
STP
Segment
Construction services
Europe, the Middle East, North America, and North Africa Industrial, commercial, water/sewage, transportation, Target Group telecommunications, maritime, tourism and railway projects
As a company committed to delivering quality work and products, safely and on schedule, and a company with an open mind ready to Positioning embrace new opportunities and driven to deliver exceptional value
SWOT Analysis
1. Well diversified business presence – presence in fertilizers and construction industry diversifies the business and reduces risk 2. Strong order backlog – Consecutive backlog growth shows financial stability 3. Good growth in EBITDA and net income growth over the years Strength 4. It has its presence felt in over 25 countries
1. Litigations tarnish company’s image – a number of litigations have been filed against the company’s fertilizer and construction businesses, tarnishing the image of the company 2. Higher debt and interest expense - will negatively impact the Weakness profitability and pricing power of the company
1. Growing construction in the Asian region – the revenue contribution from Asia and Oceania region is substabtial Opportunity 2. Growing emphasis of achieving energy efficiency in Europe - Energy efficiency is one of the key objectives that the European Unions’ (EU)
Strategy plans to achieve. 3. Expansion into emerging economies can propel the company further
1. Growing debt burden of European nations 2. Rising cost of construction material - Prices of other types of steel such as hot rolled plate and cold rolled coil have increased Threats 3. Unfavorable govt policies can cause operational inefficiency
Competition
1. Saudi Basic Industries Corporation 2. Bouygues SA Competitors 3. Saudi Binladin Group
doc_766196030.docx
SWOT ANALYSIS OF ORASCOME CONSTRUCTION
Orascom Construction
Parent Company
Orascom Construction
Category
Construction Services
Sector
Real Estate and Construction
Tagline/ Slogan
Excellence in every aspect
USP
World leader in the fertilizer industry
STP
Segment
Construction services
Europe, the Middle East, North America, and North Africa Industrial, commercial, water/sewage, transportation, Target Group telecommunications, maritime, tourism and railway projects
As a company committed to delivering quality work and products, safely and on schedule, and a company with an open mind ready to Positioning embrace new opportunities and driven to deliver exceptional value
SWOT Analysis
1. Well diversified business presence – presence in fertilizers and construction industry diversifies the business and reduces risk 2. Strong order backlog – Consecutive backlog growth shows financial stability 3. Good growth in EBITDA and net income growth over the years Strength 4. It has its presence felt in over 25 countries
1. Litigations tarnish company’s image – a number of litigations have been filed against the company’s fertilizer and construction businesses, tarnishing the image of the company 2. Higher debt and interest expense - will negatively impact the Weakness profitability and pricing power of the company
1. Growing construction in the Asian region – the revenue contribution from Asia and Oceania region is substabtial Opportunity 2. Growing emphasis of achieving energy efficiency in Europe - Energy efficiency is one of the key objectives that the European Unions’ (EU)
Strategy plans to achieve. 3. Expansion into emerging economies can propel the company further
1. Growing debt burden of European nations 2. Rising cost of construction material - Prices of other types of steel such as hot rolled plate and cold rolled coil have increased Threats 3. Unfavorable govt policies can cause operational inefficiency
Competition
1. Saudi Basic Industries Corporation 2. Bouygues SA Competitors 3. Saudi Binladin Group
doc_766196030.docx