Results of the Trakcja Group for the first quarter
As of 31 March 2018, the portfolio of construction contracts of the Trakcja Group was PLN 1,958 million (excluding the part of revenues allocated to consortium members). In the first quarter of 2018, Trakcja Group companies signed construction contracts with a total value of PLN 431 million (excluding the revenues attributable to consortium members), which translates to a significant increase of PLN 182 million as compared to the first quarter of 2017 (73%). The participation in new tenders in 2018 will allow the Group to secure its contracts portfolio for future periods to an even greater extent.
In the first quarter of 2018, the Trakcja Group generated sales amounting to PLN 205,1 million, which is an increase by 50 percent in comparison with the analogous period of the preceding year. The gross loss on sales amounted to PLN 8.0 million, and the gross result on sales decreased by PLN 12.3 million compared to the same period of the previous year. Gross profit margin on sales was -3,9% in the first quarter of 2018, while in the same period of 2017 it amounted to 3.2%.
The factors that affected most the level of sales and the results of the first quarter of 2018 were the seasonality of sales that is typical for construction industry companies, which is characterized by a significantly lower level of revenues in the first quarter of the year and the generation of a significant part of sales revenues in the second half of the calendar year. In addition, in the first quarter of 2018, Trakcja PRKiI settled contracts awarded in previous years, in a tendering period which was difficult for the industry and thus realized on a low profitability level. The results of the first quarter of 2018 presented above were also affected by the unusual increase in prices of infrastructure construction materials, subcontracting services and wage/salary costs.
Trakcja PRKiI has also incurred costs related to the diversification of operations on the market of commercial power generation and re-entering the tram segment (urban market). Trakcja PRKiI also continues to prepare their operations on foreign markets, where some investment programmes are planned as far as to 2030. The results achieved by the Group were also affected by the change in the structure of the contracts portfolio held by the Lithuanian companies.
Media Information
Robert Kuczyński
human resources and communication director
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