3/2019 - Preliminary financial results for 2018
The Management Board of Trakcja PRKiI S.A. (the "Company") informs that the process of cyclical review of long-term contracts and collecting financial data for the purposes of drawing up the Company’s financial statement for the period of 12 months ended on 31 December 2018, was completed on 18 February 2019. Therefore, the Company publishes the preliminary financial results for this period:
Sales revenues: PLN 1,004,296 thousand
Gross result on sales: PLN -123,168 thousand
EBITDA: -84,976 thousand
Net result: PLN -74,999 thousand
Significant events affecting the financial results presented above:
a. the impact of updating contract budgets in the fourth quarter of 2018 in the amount of PLN
-138,943 thousand
b. recognition of sales revenue, in other operating activities, related to sale of right of perpetual usufruct and ownership of the buildings and installations in a real property situated at 100 Lotnicza Street in Wrocław. Gross value of transaction is PLN 53,000 thousand (in reference to the current report no. 26/2018).
A significant part of expenses related to above mentioned contracts on which the margins were updated was incurred until 31 December 2018, in line with the progress of completion of the works. The impact on the level of the presented results of the Company was caused by the increased level of cost, which was impossible to predict on the date of signing contracts and the extension of duration of works.
The company does not include in the presented financial results the value of lawsuits filed by the Company against contracting entities - the total value of the subject of disputes amounting to approx. PLN 110 million. In addition, the Company plans to file further claims worth approximately PLN 30 million. The Company also does not take into account in the presented financial results other contractual claims, comes from non-judicial manner, worth over PLN 120 million.
Contracts with reduced margin were obtained almost entirely until first half of 2017, which period was characterized by high pressure on offers value as a result of prolonged investment gap.
Current order backlog has increased by approximately 45% compared to 2017 and as at 31.12.2018 was about PLN 2.2 billion net. The Company in 01.01.2018 – 31.12.2018 period has signed contracts with a total value of over PLN 1.5 billion net, most of contracts were exceeded investor’s budgets. Above data is presented without part of revenues, which attributable to consortium members. The Company has signed from the beginning of 2019, till this current report’s date of publication, construction contracts with a total value of PLN 93 million net. Additionally, the Company expects that contracts with the most favorable submitted offers, with a total value of PLN 571 million net, will be signed.
Above financial data has not been audited by certified auditor yet. Final calculation and possible changes in level of above-mentioned factors’ impact on fourth quarter of 2018 results will be disclosed in the Company’s annual report for 12 months period ended 31 December 2018 published in accordance with adopted calendar of periodic reports publication, i.e. 10 April 2019.
Loan agreements oblige the Company to abide financial indicators (bank covenants) related to the Company’s current financial situation. Preliminary estimates of the Company's financial results for 12 month period ended 31 December 2018, published to the public, indicate the risk of failure to meet the financial ratios for loans in following banks:
- Bank Polska Kasa Opieki S.A.
- ING Bank Śląski S.A.
- mBank S.A.
- Credit Agricole Bank Polska S.A.
- Haitong Bank S.A. Spółka Akcyjna, Branch in Poland
Final information regarding the implementation of loan agreements will be published after the audit of the Company's financial statement.
Legal basis:
Art. 17 clause 1 of MAR
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