Ellaktor faces up to losses

By Sandy Guthrie19 September 2018

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Greek-based Ellaktor has said that a decline in turnover in its construction segment during the first half of 2018 has hit its first half figures, although it claimed that improved figures were recorded in its concessions, environment and wind parks divisions.

A fall of 3.9% in construction compared to the same period of 2017, as well as the negative influence of €56 million of provisions and losses mainly related to the construction activity in the Balkans and the Middle East, had an impact on the Ellaktor Group in the first half of 2018.

Consolidated turnover for the first half of 2018 amounted to €922.3 million, compared to €929.7 million for the same period of 2017 – a drop of 0.8%.

Consolidated EBIT (earnings before interest and taxes) stood at €32.4 million, compared to €53.0 million for the same period last year.

Ellaktor explained that this included items with a total negative effect of €56.0 million – €18.5 million losses from a Romanian project, €18.6 million provision for an exit deal from the ISF (Internal Security Force) project in the State of Qatar, an €8.9 million loss from the dissolution of an affiliate company abroad, and a €10.0 million provision for non-offsettable withheld taxes in the concessions segment.

Ellaktor said that consolidated EBITDA (earnings before interest, taxes, depreciation and amortization) stood at €82.4 million, compared to €105 million for the same period of 2017.

In its results before taxes, the group reported losses of €11.7 million compared to profits of €19.7 million in the same period of 2017. Results after taxes represented losses of €31 million, compared to profits after taxes of €0.6 million in the same period of 2017.

The construction segment’s figures for the first half of 2018 recorded a turnover of €727.3 million, compared to €756.5 million for the same period of 2017, down by 3.9%.

Before taxes, construction’s first half figures for 2018 showed losses of €46.6 million compared to €1.1 million in the first six months of 2017. Results after taxes in the construction segment stood at losses of €49.0 million compared to €6.1 million for the same period of 2017.

Limited tendering

The group said that in the first half of 2018, there had been limited tendering of new construction projects in Greece. It said focus had been on the progress of the works in the Metro Project in Thessaloniki, Greece, on the construction of TAP (the Trans Adriatic Pipeline for gas), on the implementation of the Gold Line Metro in the State of Qatar, and on road projects in the Balkans.

Since the end of June 2018, the construction segment has secured €211 million of projects, while the group’s Aktor construction subsidiary is participating in a joint venture railway project tender of approximately €700 million in Romania. It has made it to the second phase of the €1.45 billion tender for Line 4 of the Attiko Metro in Athens, Greece.

The group said its backlog of construction activities stood at €1.9 billion, with 52% of this related to projects executed abroad.

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