Current Reports

6/2020 - Initial estimated 2019 financial results

The Management Board of Trakcja PRKiI S.A. (”Company”) hereby informs that on 27 February 2020 the Company completed the process of cyclical reviews of long-term contracts and collection of financial data for the purpose of preparation of the Company’s individual financial statements for the 12 months ended on 31 December 2019. Therefore, the Company announces the initial estimate 2019 results:

 

Sales revenues: PLN 834,210 thousand

Gross result on sales: PLN -92,890 thousand

EBITDA: PLN -120,785 thousand

Net profit/loss: PLN -135,522 thousand

 

Factors that had most significant effect on gross sales during the 12 months of 2019 include:

- Settlement of low-margin contracts won during more difficult years and before the significant increase of production costs;

- The extending process of refinancing the operating activity of PRKiI S.A., which increased the drop of profitability on construction contracts;

- The extending refinancing process also influenced the delays in signing higher-profitability railway contracts, and a lack of possibility to settle these contracts in 2019 and, as a result, no possibility to receive the assumed revenues;

- Budgets were updated in terms of the nature of costs, amounts, spread over time, and uncertainty as to revenues and cash flows from performed contracts;

- During budget updates, an analysis of opportunities and threats was conducted, which identified and accounted for technical, performance, and liquidity risks;

- In case of two railway contracts, the Company recognized revenues up to the level of incurred costs, pursuant to IFRS 15 section 45;

 

The result of the aforementioned factors on the completed process of reviewing budgets for construction contracts amounted to PLN -61,421 thousand.

 

Moreover, the aforementioned EBITDA and net result were affected by costs related with the financial restructuring process.

As of 31 December 2019, the Company’s portfolio of construction contracts was at PLN 2,295 million (excluding the revenues allocated to consortium members).

During the 12 months ended on 31 December 2019, the Company signed construction contracts with the total value of PLN 974 million (excluding the revenues allocated to consortium members).

The above financial data have not yet been verified by a statutory auditor. The aforementioned results do not account for impairment tests. Due to the initial nature of data, final calculations as well as any changes in the level of influence of the aforementioned factors on the results for Q4 2019 shall be presented in the Company’s annual report for the 12 months ended on 31 December 2019, which shall be published on 21 April 2020 according to the adopted calendar of periodic reports publication. 



 

Legal basis:

Article 17.1 of the Market Abuse Regulation (MAR)

Back to list