Revenue – USD1,024mn, +0.7% Y-o-Y, +5.3% Q-o-Q; +2.4% vs. EFGe EBITDA margin – 4.9%, 2Q15: 6.2%, 1Q16: 5.0%; EFGe: 4.9% Net profit – USD26.3mn, -22.6% Y-o-Y, +14.3% Q-o-Q; EFGe: +5.2%   Orascom Construction (OC) reported its 2Q16 financial results. New awards surprised positively, with the addition of the Suez Canal tunneling contract (which we estimate at cUSD0.9bn-USD1bn). This was in addition to the Cairo Metro contracts in Egypt, a number of road projects also in Egypt and a new LNG-receiving jetty project in Ain El-Sokhna in collaboration with BESIX and cUSD300mn worth of projects from Weitz and Contrack. Revenue and EBITDA were in line with our estimate and management guidance, while net income beat slightly (5%). Management has indicated that the Iowa Fertilizer Company (IFCo) and Natgasoline are progressing well, and that the completion of testing and pre-commissioning of the ammonia plant at IFCo is planned for September. Two more positive aspects of the results were the strong EBITDA margin in MENA (9.2%) and the improved management of the working capital cycle.   Positives Strong awards for the quarter, totalling USD2,222mn (2Q15: USD2,557mn, 1Q16: USD510mn, EFGe: USD650mn). 1H16 new awards were USD2,731mn (-17% Y-o-Y). We estimate awards of USD3.6bn for 2016e. The backlog reached USD7.5bn in June, up from USD6.1bn in March 2016 Revenue in line with estimate (variance: +2.4%) coming in at USD1.0bn, unchanged Y-o-Y, +12.8% Q-o-Q, roughly equally split between MENA and US operations. 1H16 revenue grew 6.5% to USD2.0bn Strong EBITDA margin of 9.2% in MENA, bringing the blended margin to 4.9%, exactly in line with our estimate and at the upper range of management’s guidance of 4-5% Net cash position grew, to reach USD299mn in June 2016, following the settlement of part of the group’s debt in Egypt Better management of working capital cycle, with positive working capital of USD320mn in 1H16, compared to negative working capital of USD156mn in 1H15 Net income slightly beat our estimate (variance: 5.2%) coming in at USD26.3mn (-22.6% Y-o-Y, +14.3% Q-o-Q). 1H16 net income was USD49.3mn (+23.9% Y-o-Y) (Company disclosure, Mai Attia, Sara Boutros)   Orascom Construction Limited: EGP61.26 as of 23 August 2016, Rating: Neutral, FV: EGP61.09 per share, MCap: USD814mn, ORAS EY / ORAS.CA