Financial statement for the First Half of 2018
During the first half of 2018, the Mostostal Warszawa Group generated sales revenues in the amount of PLN 418 million and incurred a net loss in the amount of PLN 29 million. The decrease of revenues during the first half of 2018 in comparison to the same period of 2017, as planned, was the result of decreased production at the construction of power blocks at the Opole power plant site where the largest amount of works was in the years 2015-2017. Losses recorded by the Group are the result of the negative exchange rates valuation of loan facilities in EUR as well as significant increases in the materials and subcontractor prices which were difficult to predict when valuation for contracts was made back in 2016-2017.
From the beginning of 2018 the company has acquired contracts amounting to PLN 1,133 million and the Group’s portfolio in comparison to 2017 has increased by 40%. The value of Group’s current portfolio amounts to PLN 1,946 million which in turn ensures revenues for the next two years at the levels comparable to 2017, the construction portfolio is more diversified with contracts for the general building constituting 40%, industry and energy construction at 28%, and infrastructure at 32%. Part of the newly acquired contracts provides right to the Group to obtain advances allowing to finance construction works from the beginning.
Structure of debt did not change in comparison to last year and remains advantageous for the company. Only PLN 26 million out of PLN 244 million are banking loans and leasing facilities (PLN 29 million as of 31.12.2017). The remaining loan facilities are from the parent company – Acciona Construccion with its seat in Madrid.
As of 30.06.2018 the total equity of Mostostal Warszawa Group amounted to PLN 109 million. The employment level was at 1,519 employees which was similar to level at the end 2017.
It is our objective for 2018 to further increase our orders portfolio and improve contract profitability, despite unfavourable external factors, independent of the Group.