Investor Presentaiton
Contracting Financial performance
Contracting Cluster consists of a recognized Grade A MEP and landscape contractor, offshore marine, and logistics services. The businesses in this division have been in operation between 6 and 9 years.
Since the Acquisition in April 2022, the legacy businesses of Debbas, WaterMaster, CESCO, CDCT, and EMEC have been included to achieve operational and cost synergies where available.
Historical financial performance
(pro forma, QAR millions)
2000
1800
1600
1400
1200
1000
800
885.1
600
626.1
400
580.8
200
0
FY2019A
FY2020A
HY2021A
1,178.6
885.5
FY2021A
HY2022R
FY2022F
FY2022F represents annualisation of HY2022 Revenue levels and are indicative only
Work in hand as at 30 June 2022
Contracting
QAR 1019.6 m
46%
Major Current Projects
Al Bussair Camp
Al Waab City Project
Commercial Boulevard in Lusail BP-18
Tamim Air Base
Doha Marriott Gulf Hotel
Major Opportunities
Korean Medical Centre
Al Wakra STP
Historical performance / drivers
The HY 2022 Revenue of QAR 885.5 million significantly exceeded HY 2021 of
QAR 580.8 million (up by 52.5%). This activity is driven by a solid order book of
major projects in both the MEP and landscape businesses as Qatar readies itself
for the FIFA World Cup 2022.
Net Profit Contribution of QAR 39.9 million or 4.5% is slightly below Target range
of 5-10% due to cost-to-complete increases in Landscape, EMEC and Debbas as
well as low utilization of Marine fleet..
Cost synergies and improved project delivery initiatives have been planned and
being implemented in Q3 FY2022 which are aimed at improving Contribution
Margins for the remainder of the year.
Estithmar
Holding Q.P.S.C.
Forecast performance / drivers
Cluster will continue to benefit from completion of infrastructure and building contracts
ahead of FIFA World Cup in Q3 2022. A shift is then expected to general landscaping
maintenance and beautification projects up to and through the tournament.
Beyond that, “[w]hile certain segments of the [construction] sector will see less activity
following the World Cup, building will continue in projects that support Qatar National
Vision 2030", The Report: Qatar 2022 || Oxford Business Group.
Activity expected to stabilize into 2023 and return to the more historical level of growth in
line with the general construction output. "[C]onstruction output growth is expected to up
to annual growth of 4.1% between and 2025, supported by investments under the Qatar
National Vision 2030" (Qatar Construction Industry Report 2022: Growth Set to be Assisted by
Government Capital Expenditure Under the 2022 Budget - ResearchAndMarkets.com | Business Wire)
Value of secured contracts at 30 June 2022 was QAR 1019.6 million (HY 2021: QAR 1,392.9
million), or approx 7 months of revenue based one H1 revenue run rate. [Note: that revenue
burn rate expected to decrease after Q3 2022 due to completion of FIFA 2022 projects].
ESTITHMAR HOLDING Q.P.S.C
‣ elegancia
MEP
▸ landscape
▶ marine
▶ fit-out
‣ kitchens
contracting
▶ fire fighting
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