Cairo-Orascom Construction Industries Inc. (OCI) reported net income for the second quarter ending June 30 of $102.4 million on sales of $1.1 billion, compared to the year-ago $245 million and $974.4 million, respectively. OCI said second-quarter earnings were impacted by a one-off inventory write-down from Gavilon (OCI owns 18 percent of Gavilon) as result of lower fertilizer prices, low volumes in the U.S., and lower than expected performance of its grain business. Six-month net income was off 71.1 percent, to $208.2 million on sales of $1.92 billion, versus the year-ago $719.5 million and $1.71 billion, respectively. Within its fertilizer group, OCI said Egyptian Fertilizer Co. (EFC) sold 655,212 mt of urea in the first half and 308,691 mt in the second quarter, at an average selling price of FOB US$265.4/mt. The group commissioned the Egypt Basic Industries Corp. (EBIC) plant in the second quarter, and it sold 70,100 mt of ammonia during the quarter at an average price of FOB US$201.2/mt. EBIC has already sold over 100,000 mt of ammonia to-date, with the plant achieving a stable production run rate and operating at 105 percent capacity. The group started marketing urea in Brazil via its agreement with Group Fertipar, selling approximately 50,000 mt of urea valued at US$14 million. The group also began production of ammonium sulfate through its toll-manufacturing agreement with EFIC.
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