Ellaktor recorded a 125% increase in profitability in Renewable Energy Sources (RES) and 57% in Concessions, compared to 2018, while the financial performance in Construction showed a decrease both in turnover and in results after taxes. The financial results that were announced today, confirm the strategy that was presented by Management, and foresees, among others, focus on Concessions and RES – with ongoing increase of the wind farms’ installed capacity – and in parallel focus of Construction on Greece and Romania, as well as interruption of operations (stop loss) in countries or projects that were undertaken in the past and produce negative results.
As a result of this strategy as well as of the limited tendering in new projects in Greece in 2019, Construction’s turnover has decreased, leading to a consequential decrease of ELLAKTOR Group’s consolidated revenues for the fiscal year 2019, which amounted to € 1,273.6m, compared to € 1,857.3m in 2018. Consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) were € 80.6m in 2019 ( € 193.9m, if non-recurring losses of € 113.3m arising from photovoltaic projects abroad and mainly in Australia where construction has been completed, are excluded) versus € 142.9m in 2018. With regards to results before taxes, the Group recorded losses of € 84.0m compared to losses of € 25.8 m in 2018 and the results after taxes were losses of € 105.7m compared to losses of € 95.6m in the previous year.
The Group has now significantly reduced its activity abroad, either by completing the projects it had undertaken (e.g. Australia, Albania, Serbia) or by withdrawing from loss-making activities (stop loss), as part of the Construction restructuring. In addition, within the context of rationalizing the balance sheet and better depicting the financial overview of the Group, Management has consciously selected to proceed to a total impairment of goodwill from past acquisitions in Construction, a fact that burdened further the financial results of the specific Segment and subsequently the results of the Group with losses of € 41.8 m.
Commenting on the financial results of FY2019, ELLAKTOR Group CEO, Mr. Anastassios Kallitsantsis, stated: “The performance of 2019 is the result of the Group’s strategy to focus on the segments of RES and Concessions, to reinforce the Environment segment and to restructure the Construction segment. In Construction we took decisive steps, such as the interruption of loss-making projects and the extensive limitation of the operations abroad, focusing on Greece and Romania and on Facility Management services in Qatar. For 2020, the priorities are firstly to utilize all available options to protect the Group and its people from the Covid-19 pandemic, emphasizing in parallel on the minimization of consequences on our segments’ operations, secondly to implement the segments’ investment plans and thirdly to succeed in restructuring Construction.”
The corporate net debt of the Group as of 31.12.2019 stood at € 846.0m compared to € 584.1m as of 31.12.2018. It is reminded that ELLAKTOR completed the issue of two international senior notes, the first of a nominal amount of € 600m in December 2019, and the second of a nominal amount of € 70m in January 2020, expanding the Group’s sources of financing and gaining access to the international debt capital markets.