EFG-Hermes sets OCI fair value at EGP 721.5

EFG-Hermes sets OCI fair value at EGP 721.5
Thu 6 Mar 2008 11:52 AM




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Orascom Construction Industries (OCI)


EFG-Hermes set Orascom Construction Industries (OCI) fair value at EGP 721.5, up 6.1% compared to market value and 6% compared to Hermes’ previous valuation of EGP 680, excluding fertilizers industry. Hermes recommended a ST "accumulate" and a LT "buy".

Hermes said fair value will reach approx. EGP 421.5, following proposed EGP 300 coupon payment.

Hermes forecasts consolidated revenues to net EGP 19.97 billion and EGP 20.526 billion in FY07 and FY08 resp. Net profit, before minority rights, is expected to reach EGP 6.91 billion in FY07 and EGP 71.374 billion in FY08, including EGP 67.678 capital gains.
Hermes outlook on OCI is denominated in billions.

OCI fertilizers production costs are projected to decline 20%, compared to global cost, thanks to the relative advantage of using low-priced natural gas in Egypt and Algeria, in addition to gas high prices in the US, Europe and Asia, increasing urea fertilizer prices globally.

This will reflect positively on profit margins for ME fertilizer producers, compared to other countries.

Bad night for English clubs

PARIS: Everton, Tottenham and Bolton failed to match the lofty heights of their Champions League counterparts as their Uefa Cup dreams were left hanging in the balance. Hopes were high that the three could follow the impressive examples set by Manchester United, Chelsea and Arsenal in midweek, but all three endured disappointing nights. Everton, who harbour hopes of playing in Europe's elite competition next season, slumped to a 2-0 defeat at Fiorentina in their last 16, first-leg clash to lose their 100 per cent record in the competition.

Tottenham were also beaten, going down 1-0 at White Hart Lane to PSV Eindhoven to shatter coach Juande Ramos's hopes of winning the competition for the third successive year.

Bolton, battling relegation from the Premiership, drew 1-1 at home to Sporting Lisbon.

Glasgow Rangers kept British pride intact with a 2-0 win at home to Werder Bremen while title favourites Bayern Munich cruised to a 5-0 win at Anderlecht.

Everton were indebted to goalkeeper Tim Howard who celebrated his 29th birthday in style with a string of fine first-half saves inside the cold and rainswept Artemio Franchi stadium in Florence.

But Fiorentina were deserving winners with second-half goals from Serbian striker Zdravko Kuzmanovic and midfielder Ricardo Montolivo.

"We were a little too negative and too cautious," admitted Everton skipper Phil Neville.

"We didn't play the way we could so it was a let down. We'll have to play at a higher tempo in the second-leg next Wednesday, put in crosses and create chances."

Tottenham's English League Cup final hangover showed no sign of abating as PSV took a 1-0 advantage back to the Netherlands.

Jefferson Farfan punished a horrendous first-half mistake from debutant Gilberto to inflict a second successive defeat on Juande Ramos's side since they won the League Cup two weeks ago.

At the Reebok, Bolton saw Sporting Lisbon's Simon Vukcevic crack a stunning equaliser to cancel out Gavin McCann's first-half opener to leave Gary Megson's side facing an uphill struggle in Portugal.

Celtic may have been eliminated from the Champions League by Barcelona but city rivals Rangers stayed on course in the Uefa Cup with a 2-0 win over Werder thanks to goals either side of half-time from Gabon international Daniel Cousin and Northern Ireland midfielder Steven Davis.

"Early on Bremen had a lot of possession but scoring just before half-time was a big factor for us and then scoring at the start of the second half put us in a great position," said Rangers boss Walter Smith.

"But it was also vital we didn't concede a goal at home and that could be important in the second leg."

Former European champions Bayern Munich were the night's most impressive winners cliching victory against Anderlecht in Brussels for the first time in five meetings.

Hamit Altintop, Luca Toni, Lukas Podolski, Miroslav Klose and Frank Ribery were all on target while Anderlecht were also reduced to 10 men after the sending off of Polish defender Marcin Wasilewski on the stroke of half-time.

Marseille, also former European champions, moved closer to the last eight with a 3-1 win over Russia's St Petersburg with former Liverpool striker Djibril Cisse scoring twice.