ORASCOM DEVELOPMENT EGYPT
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Orascom Development Egypt Strikes Mega Land Deal Worth EGP 1.4 Billion
Orascom Development Egypt secures a major land sale in El Gouna, marking a strategic move amid shifting financial performance.
July 2, 2024 at 12:22:00 PMScore: 78

Orascom Development Egypt (ODE) has secured a landmark transaction, selling 145,266 square meters of prime land in El Gouna for EGP 1.54 billion. This deal, executed at 15 times the land’s book value of EGP 101 million, represents the largest land sale in El Gouna since 2015. The move aligns with the company’s strategy to boost value creation through selective land sales and development, accelerating monetization of its extensive land bank. Despite a consolidated net loss of EGP 984.5 million in Q1 2024 (versus a EGP 384 million profit in Q1 2023), revenues surged to EGP 4.17 billion from EGP 2.95 billion year-on-year.
Recommended Actions
- Hold ODE stock pending clarity on strategic land sales impact
- Monitor Q2 2024 financials for profit recovery signs
- Consider long-term potential of El Gouna development projects
- Review company updates on land bank utilization
- Compare Q1 performance with sector peers for context
Positive Aspects
- Record-breaking EGP 1.54 billion land sale
- Revenue growth to EGP 4.17 billion
- Alignment with long-term land monetization strategy
Negative Aspects
- Q1 2024 net loss of EGP 984.5 million
- Year-on-year profit decline from EGP 384 million to a loss