Mostostal Warszawa S.A. Management Board’s commentary on the 2018 consolidated financial statements of Mostostal Warszawa Group
Mostostal Warszawa Group reached in 2018 revenues from sales in the amount of PLN 1,013 million and recorded a net loss of PLN 46 million. The Group’s losses were the effect of negative exchange rate and its impact on the EUR loans valuation as well as significant prices increases of materials and subcontractors services of which scale was difficult to predict when valuating contracts signed back in 2016-2017.
In 2018, we entered into new contracts amounting to a total value of PLN 1,678 million and in comparison to the end of 2017, we recorded an increase in the Group's portfolio by 48%. Its current value is at PLN 2.057 million. The Group's portfolio will provide revenues for the next two years at a level close to that of 2018 and also becoming more diversified, as it grew with contracts from the general construction sector by 38%, infrastructure by 39% and industrial and energy by 23%. Portion of newly signed contracts enables the Group to receive advance payments that allow to finance their implementation during the initial phase.
The debt profile has not changed compared to last year and is still very beneficial for us. Only PLN 23 million from PLN 272 million are bank facilities and leasing (PLN 29 million as at 31 December 2017). The remaining amount is loans obtained from the parent company - Acciona Construcción based in Madrid.
As at 31.12.2018, the total equity of Mostostal Warszawa Group amounted to PLN 90 million. The employment reached the level of 1.481 employees, remaining on par to the end of 2017.
Our goal for 2019 is to further increase the order portfolio and improve the profitability of our contracts, despite unfavourable external conditions, independent of the Group.