Financial statement for the third quarter of 2017

Commentary of Andrzej Goławski, President of the Management Board of Mostostal Warszawa SA on the financial results from the consolidated financial statement of the Mostostal Warszawa Group for 3Q of 2017

After three quarters of 2017, the Mostostal Warszawa Group achieved PLN 88 million profit in sales, whereas in the third quarter it amounted to PLN 23 million. After three quarters, the aggregated net profit amounted to PLN 10 million while third the quarter was closed with a loss of 10 million.

One-off items such as the impairment in regard with judgement of the Court of Arbitration in favour of Lubelski Węgiel Bogdanka SA in the context of extension of the coal processing facility in Bogdanka and weakening of Polish zloty towards euro resulting in foreign exchange losses that needed to be accounted with respect to valuation of loans granted to Mostostal Warszawa have yielded negative results in the third quarter. Excluding special items over this period, the Group would have achieved positive net results in the third quarter amounting to PLN 3 million. 

Over the third quarter Group achieved sales revenues of PLN 250 million (from January to December 2017 PLN 820 million in total). A decrease in Group’s revenues as compared to the analogue period in the last year (respectively by 26% and 23%), was a result of slowdown in an acquisition of new contracts over the years 2015-2016 and decreasing output on the construction site in Opole resulting from the advanced progress of work as it has been foreseen in the schedule.

At this point, the Group is rebuilding its backlog. From the beginning of 2017, we signed new contracts worth PLN 937 million in total. As of this day, Mostostal Warszawa Group’s order backlog amounts to PLN 1.42 billion and includes contracts of general construction, energy, industry, infrastructure and environmental protection. Systematically developed order portfolio will allow further, stable development of the Group.  

Financial debt profile of the Group hasn’t changed in comparison to the last year and is still very favourable. Bank loans and leasing amounts only to PLN 33 million of 232 PLN million (PLN 17 million as at December 31, 2016). The remainder constitutes loans granted by the parent company – Acciona Construcción with its registered office in Madrid.

At the end of the third quarter of 2017 net equity of the Mostostal Warszawa Group amounted to PLN 248 million. The employment has reached the status of 1.557 employees which means it has remained at the comparable level as at the end of 2016.

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