ELLAKTOR: The recovery of the construction sector continues

By Eleni Bota

ELLAKTOR Group’s recovery in the construction industry continues, despite the challenges that continue to plague the industry with rising construction material prices, with subsidiary AKTOR focusing on taking on profitable projects in both Greece and Romania.

In the first half of the current fiscal year, it signed contracts with a total value of 321 million euros, while after the end of June, new contracts worth 24 million euros were also signed. Also, new projects amounting to 950 million euros have been secured, the contracts of which are expected to be signed, bringing the total backlog of projects of AKTOR and its subsidiaries to 2.8 billion euros.

For the first half of 2022, operations in Greece contributed approximately 65% ​​of the Construction sector’s revenue, while representing 61% of the construction backlog (including contracts to be signed).

In addition, AKTOR will be the developer of the Group’s projects in Gournes of Heraklion as well as the Kampa estate in Kantza, Attica, with a total estimated budget of over 350 million euros. This resulted in the construction sector presenting in the first half of 2022 revenues of 244.7 million euros, marking an increase of 29.2% compared to the first half of 2021, when revenues had risen to 189 .4 million euros.

Regarding the EBITDA of the Construction sector, for the first half of 2022 they were formed at a profit of 0.1 million against a loss of 54.0 million in the corresponding period of 2021.

For the second quarter of 2022, EBITDA recorded losses of 21.3 million euros against 193 million euros (the same period last year) affected by the compensations of 9 million euros to drivers stranded on Attiki Odos in the recent bad weather, as and from the payment of compensation of 26.2 million euros in arbitration in Qatar.

Substantial profits from Concessions

The contribution of the concessions sector was significant as the revenue stood at 126.6 million euros compared to 98.2 million euros in the first half of 2021, showing an increase of 29% or 28 million euros.

This increase in revenue is due to the 28% increase in traffic on Attiki Odos. The EBITDA of the sector was 68.6 million euros compared to 56.8 million euros in the corresponding period last year, marking an increase of 21%. Pre-tax profit was €28.3m vs €6.9m, while after-tax results came in at €20.1m vs €2.9m in H1 2021.

New projects for ELEKTOR

The Group’s subsidiary, ILEKTOR, also postponed new projects in the first half of the current year. The company, through a scheme in which it participates with 60%, was selected as the Contractor/Concessionaire of the public tender for the award of the concession contract “Modernization, Upgrading, Conversion & Operation, by concession, of the Thermal Treatment Facility for Hazardous Sanitary Waste Units (HWW) and similar with them of an estimated value of 81.1 million euros, excluding VAT, plus a relocation option of an estimated value of 5.0 million euros excluding VAT”. The pre-contractual inspection has been completed and the contract is expected to be signed in early September 2022.

Now, ILEKTOR, through an out-of-court dispute resolution process, reached an agreement and received compensation for extra-contractual construction works of past years, amounting to approximately 1.7 million euros.

Finally, within May 2022, a biogas energy utilization unit, released from the West Landfill, was put into operation. of Macedonia, with a capacity of 1.26 MWe in which ILEKTOR SA participates through a joint venture scheme (60%). The Group operates 5 municipal waste treatment plants with a capacity exceeding 700,000 tons per year, 2 clinical waste treatment plants, as well as 4 energy production projects from the utilization of biogas released from Sanitary Waste Landfills with a total installed capacity exceeding 33 MW.

REDS: Increasing Smart Park traffic

Despite the prevailing uncertainty regarding both the evolution of Covid-19 and the energy crisis, an acceleration of the rate of traffic growth was observed at the “Smart Park” shopping center, resulting in the turnover of the stores rising to higher levels and from 2019 and to show a dynamic path of recovery.

This resulted in REDS reporting revenues of €4.2 million, compared to €2.6 million for the first half of 2021, an increase of 59%.

EBITDA for the first half of 2022 amounted to 2.7 million euros compared to 1.2 million euros in 2021, marking an increase of 121%.

Earnings before interest and taxes (EBIT) were €1.8m vs €0.1m in 2021 and earnings before tax were €0.8m vs €0.9m for 2021 use of 2021.

The company is in negotiations with a financial institution to refinance its borrowing. The aim of the negotiation is to achieve more favorable terms for the company that will strengthen its financial situation.

The company is considering the purchase of plots adjacent to the SMART PARK commercial park and is planning additional efficient actions that will also increase the traffic of the commercial park.

In the Alimos Marina development project, REDS implements the obligations regarding the design and construction contract, where in the year 2021 it required the completion and submission of the Master Plan, the collection of proposals / architectural studies, the traffic study and marine construction projects.

The company is awaiting approval from the Ministry to proceed with the issuance of permits. According to the plan, a zone of shops and restaurants, a hotel, a pier, a pedestrian and bicycle path, a command and control tower of the marina, and a parking lot of 850-1,000 spaces will be built, among other things. The redevelopment includes a land area of ​​approximately 210 acres.

In addition, construction will begin next year for the Cambas Project, in the Kantza region, with a three-year completion horizon. Following the issuance of a presidential decree, the Business Plan has been updated and the drafting of the Master Plan is underway. Building permits are then expected to be issued within the next year, so that construction can begin in 2023. Completion of the projects, which include office buildings, a museum, a restaurant, a mall, a small 40-bed hotel and cultural spaces, is planned in 2026.

The completion of the construction of the project presupposes the finalization of its financing.