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ELLAKTOR: The backlog of 3 billion and the battle for Attiki Odos

of Eleni Botas

AKTOR, of the ELLAKTOR Group, has added projects totaling 436 million euros in 2021 and additional projects amounting to 228 million euros from the beginning of 2022 to the unfulfilled balance of its signed contracts.

In addition, the company has increased its construction object having emerged as Capital.gr wrotea temporary contractor for projects worth 657 million euros, which raise its backlog of over 3 billion euros.

As the CEO of ELLAKTOR Efthymios Bouloutas stated yesterday during the presentation of the Group’s financial results to journalists, the construction sector is expected to present positive cash flows at the end of 2022, while AKTOR will claim, among other things, Concession projects. PPPs totaling 3 billion that are expected to be auctioned in the next 24 months.

As stated by Mr. Bouloutas, ELLAKTOR at this stage is thrown into the battle for the claim of Attiki Odos together with AVAX and “other participants that will be announced on May 5 (the event has been defined by the HRDH)”, as reported.

However, information indicates that the French Ardian also participates in the scheme for Attiki Odos, with ELLAKTOR being the leader.

Regarding the finding of funds to claim the concession, Mr. Bouloutas stated that the cash corresponding to the Group’s investment in Attiki Odos will be used, which according to information amounts to 160 million euros and to which will be added the cash flows that will come until the end of the concession, on October 5, 2024. The remaining money will be found by financial institutions interested in financing the concession of the road axis.

Rising profit margins rise in raw materials – Price revision for the fourth quarter of 2021

Mr. Bouloutas described the increase in the cost of raw materials as a particularly important problem, as in terms of older projects more money was needed to be completed, while for future projects the profit margin has been significantly reduced.

Referring to the price increases of materials, the CEO of AKTOR, Christos Panagiotopoulos stressed that those that existed in 2021 “were relatively small and we were able to deal with them.”

The big problem concerns the first quarter of 2022 where prices have skyrocketed and we still can not predict what will happen. According to him, “the projects in Romania (where 50% of AKTOR’s backlog comes from) there has been a price revision of up to 55% which have been included in the projects already being executed.

Therefore there is no problem. In Greece, after very serious processes carried out by the country’s contractors, we managed and activated for the first time after 15 years the price revisions which cover part of the increases of the first three quarters of 2021 which were relatively smaller. The big problem starts in 2022 and there we do not know what will happen.

Information indicates that the Ministry of Infrastructure and Transport has already prepared the price revisions for the 4th quarter of 2021 which will be increased compared to the previous three quarters.

As Mr. Panagiotopoulos mentioned, the cost that the contractors are called upon to manage is high, with most categories of materials recording double-digit increases.

Indicatively, he mentioned that the price of asphalt has risen from 350 euros per ton to 650 euros per ton, while the price of a ton for iron has risen from $ 1,020 to $ 4,000.

Project financing and the bond

For the financing of the big projects of the Group (Kampas estate, Gournes Heraklion, etc.) Mr. Bouloutas stressed that there is interest in financing through RRF programs while the Group is considering collaborations with international players and large funds.

Regarding the possibility of a new increase in the share capital of the Group, as clarified, ELLAKTOR has enough cash available to execute its investment plan. “Nevertheless, all groups are in search of the optimal capital structure and therefore all possibilities are open,” said Mr. Bouloutas.

Regarding the Group’s planning for the bond, as he said, it is progressing. It should be noted that the bond, amounting to 670 million euros, was issued in 2019, and which was concluded at an interest rate of 6.4% with a maturity date of 2024 and for which Aktor Concessions, the parent company Ellaktor (therefore essentially the Wind sector due to the absorption of EL.TECH.ANEMOS) and ELECTOR, ie waste management.

“It is a large bond with an extremely high interest rate for the data of that time. The bond is about halfway through so it ends at the end of 2024. Obviously there is a strategic planning of the management but we have a lot of time. with financial institutions and we hope that in time we will have developments “. stressed.

The Hellenic Capital Market Commission has to do with the shareholders

Regarding the investigation of the Hellenic Capital Market Commission, Mr. Bouloutas stressed that “unfortunately the company is involved in all this … but Ellactor is not in any active investigation. These concern shareholders of the company, of course the legal entities.

The company has absolutely no involvement or opinion. I know this through the posts. “I have no institutional way to know what is going on in the Hellenic Capital Market Commission on issues concerning shareholders.”

Source: Capital

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