Orascom Construction SWOT Analysis, Competitors & USP

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

Orascom Construction STP

Segment

Construction services

Target Group

Europe, the Middle East, North America, and North Africa

Industrial, commercial, water/sewage, transportation, telecommunications, maritime, tourism and railway projects

Positioning

As a company committed to delivering quality work and products, safely and on schedule, and a company with an open mind ready to embrace new opportunities and driven to deliver exceptional value

Orascom Construction SWOT Analysis

Strengths

Below is the Strengths, Weaknesses, Opportunities & Threats (SWOT) Analysis of Orascom Construction :

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

4. It has its presence felt in over 25 countries

Weaknesses

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 profitability and pricing power of the company

Opportunities

1. Growing construction in the Asian region – the revenue contribution from Asia and Oceania region is substabtial

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

Threats

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

3. Unfavorable govt policies can cause operational inefficiency

Orascom Construction Competition

Competitors

Below are the 3 main Orascom Construction competitors :

1. Saudi Basic Industries Corporation

2. Bouygues SA

3. Saudi Binladin Group