Ellactor: Projects 366 million euros – At € 2 billion the unfulfilled

By Eleni Botas

ELLAKTOR signed projects totaling 366 million euros in 2021, of which 166 in the first quarter of the year, raising the unfulfilled balance of the Group’s signed contracts to 2 billion euros.

Among the most important projects undertaken by AKTOR is a new hotel complex in Athens, with a budget of 109 million, the construction of networks and sewerage pipelines in areas of Eastern Attica, a budget of 32 million euros, the operation and maintenance of the West and East Axis. budget of 39 million euros, the expansion of the gas pipeline network in Xanthi and Drama amounting to 17 million as well as the construction of US military barracks in Larissa, amounting to 20 million euros.

Regarding the Psytallia project, it is expected to be signed by the end of the year. The value of the project is 165 million euros and Aktor participates in the consortium (together with AVAX) with 40%.

As the management of the Group stated yesterday, answering a relevant question during the presentation of its financial results to analysts and institutional investors, the construction activity has great variability and it is difficult to make estimates.

However, as stressed, the trend is improving and at the end of 2022 the losses could stop and the profits could start.

In the first nine months of 2021, the construction sector presented revenues of 317.4 million, reduced by 15.2% compared to revenues of 374.5 million in the first nine months of 2020, mainly due to reduced construction activity, as the Group has decided to focus geographically in Greece and in Romania.
The revenues of the sector for the third quarter of 2021 amounted to 128 million compared to 117.8 million in the corresponding period last year, recording an increase of 8.7%.

The comparable EBITDA of the construction sector amounted to losses of 43.9 million compared to losses of 43.2 million last year, while including the charge of 26.2 million due to a negative arbitration outcome for a project in Qatar, EBITDA of the Construction sector amounted to losses of 70.1 million, compared to losses of 43.2 million in the first 9 months of 2020.

During the presentation the management of ELLAKTOR stood in the third quarter which was the first profitable quarter after 18 months at pre-tax level.

In addition, after the capital increase and the improvement of EBITDA, there was a significant decline in the net debt / EBITDA ratio to 3.7 times.

Revenues are stabilizing and trends are improving in almost all sectors, the administration stressed, while the exits from non-profit countries continue to be the Czech Republic, the United Kingdom and Chile, while the exits to Australia and Brazil are finalized.

Also, the management of Ellactor is still in discussions with the domestic banks, in order to be given financing lines but also to achieve a reduction of its financial expenses.

In the field of energy, ELLAKTOR examines all the legal possibilities for the project in Agrafa after the rejection of the environmental conditions, while in the field of real estate REDS is one of the two contenders in the HRDH competition for “Mikro Elliniko” in Gournes, Heraklion , and on December 6 they have been called upon to improve their financial offer.