Orascom Construction CEO expects better Q2 but inflation to persist

Activity was also subdued because of the European winter. (File/Shutterstock)

• The performance of Belgian’s Besix Construction company was hampered by the pandemic in Europe

RIYADH: Orascom Construction expects performance to improve in the second quarter despite persistent inflation that has forced up the price of building materials.
The performance of Belgian’s Besix Construction company, half-owned by Orascom, was hampered by the pandemic in Europe, CEO Osama Bishai told Al Arabiya.
Activity was also subdued because of the European winter but is expected to pick up in the second and third quarters as the industry gets going again, he said.
The construction boss also flagged the impact of rampant inflation that is already stoking price increases from timber to concrete.
“Supply chains will not be able to secure resources at the same time, and we will enter a bottleneck that will raise prices,” he said. “We advise all of our customers to speed up their decisions, so that we do not have a difficult year of inflation,” he added.
Last week Orascom Construction reported a 4.4 percent decrease in first quarter net profit to $23.9 million compared to a year earlier.