Concessions bring significant income to the Construction Groups

Her Eleni Botas

The concessions sector for the Construction Groups proves to be particularly important in 2021, as it was the one that brought them significant revenues.

At a time when the construction activity for 2021 proved to be another difficult year due to the pandemic, the increase in the prices of construction materials but also the delay in bidding for new projects, the concessions sector is proving to be profitable.

For this reason, as some top executives in the capital sector claim, from all forms of project bidding (public, PPPs and Standard Proposals), the Concessions sector is the only one that can provide revenue for construction companies (without waiting for payments). from the State), while the benefits for users are significant, as they use the reliable services and facilities provided by such a project.

In fact, as they report, even in the case of PPPs, the payment is made by the method of availability payments, therefore there are delays as well, as the State is involved, in contrast to the concessions, which when a project is completed, the operation begins immediately. its exploitation.

For the GEK TERNA Group the existing concessions (the Group holds 100% in the concessions of the NEW CONDUCTS MOTERMENTS 46% of the Concession company of Kasteli Airport INTERNATIONAL AIRPORT OF HERAKLION CRETE CONCESSIONS SA), had a turnover of 173 million euros, compared to 151.3 million euros in the corresponding period of 2020, recording an increase of 14%. while operating profitability (adjusted EBITDA) 1 amounted to 101.8 million euros, compared to 105.5 million euros in the corresponding period of 2020.

The concessions sector is proving to be an important asset for the ELLAKTOR Group as well.

With the gradual lifting of traffic bans by the Greek Government to limit the spread of the COVID-19 pandemic, traffic on Attiki Odos increased by 16.83% in the period January-December 2021 compared to the corresponding period of 2020.

An upward trend compared to the corresponding period of 2020, was also recorded on the other highways.

During the year 2021, the revenues of the Concessions sector for the Group amounted to 233.3 million compared to 202.4 million in 2020, showing an increase of 15.3% or 30.9 million.

This increase in revenue is mainly due to the increase in traffic on Attiki Odos due to the gradual lifting of the Government’s prohibition measures taken to limit the spread of the COVID-19 pandemic.

The EBITDA of the Concessions sector during the year 2021 amounted to 142.8 million compared to 124.1 million in the corresponding period last year, recording an increase of 15.1% or 18.7 million, influenced by the aforementioned increase in traffic due to the lifting of traffic restrictions. The EBITDA margin was 61.2% for the year 2021, the same as for the year 2020.

Respectively, the operating results amounted to 73.9 million compared to 56.6 million increased by 30.7% compared to 2020. Profits before taxes were 40.9 million compared to 31.0 million and the results after taxes amounted to 27.9 million compared to 18.1 million, an increase of 32.1% and 54.3% respectively, compared to 2020.