PBG Group publishes H1 2012 results
PBG Group publishes H1 2012 results
- Parent posts net loss of almost PLN 1.022bn.
- Consolidated net loss attributable to owners of the parent stands at just under PLN 1.686bn
- PBG's assets valued at around PLN 2bn as at the end of H1 2012, down by PLN 827bn on the end of Q1 2012
- The Group's assets valued at PLN 4.706bn, down by PLN 1.686bn on the end of Q1 2012
The PBG Group has published its financial results for the first six months of 2012. Losses reported on the parent and Group levels are the highest on record. The dramatic deterioration in financial performance has been caused by liquidity problems under contracts having either hindered or stopped the progress of work, thus leading to a major contraction in revenues. Moreover, the reported losses are an effect of bankruptcy proceedings involving the Group companies (opened on petitions for bankruptcy with arrangement option and one petition for liquidation). In connection with the proceedings, PBG has recognised impairment losses of significant value on equity interests held, previously advanced loans and receivables. In addition, Group subsidiaries have recognised provisions for liquidated damages under contracts terminated by employers, which further exacerbated the amount of loss.
"Amid vast uncertainty and volatility, the PBG Management Board resolved to apply a conservative approach in asset measurement and to recognise impairment losses of substantial value on the Company's assets. The conservative approach was also used when assessing contract risks," said Wiesław Różacki, President of the PBG Management Board.
As a reminder, in June of this year PBG S.A., HYDROBUDOWA POLSKA S.A. and Aprivia S.A., three companies belonging to the PBG Group, filed petitions for bankruptcy with arrangement option. The decision was prompted by difficult liquidity positions of the companies resulting form the execution of capital-intensive road construction projects, only partial settlement of the contract for the construction of the National Stadium in Warsaw and the protracting negotiations with the financing banks. Two weeks later other eight subsidiaries (PBG Avatia Sp. z o.o., Dromost Spo. z o.o., Przedsiębiorstwo Robót Inżynieryjno-Drogowych SA, Metorex Sp. z o.o., KWG Sp. z o.o., PBG Technologia Sp. z o.o., PBG Energia Sp. z o.o. and Strateg Capital Sp. z o.o.) filed similar petitions to protect their interests, as well as the interests of their creditors and employees. Another company that filed for bankruptcy with arrangement option was Energomontaż Południe S.A. The decision by the twelve Group companies to make their filings almost simultaneously was prompted by the fact that the companies have provided cross guarantees to secure the repayment of bank loans and trade creditors, and (in some cases) assumed joint and several liability under consortium-delivered major contracts. As of today, two arrangement cases (involving PBG and HYDROBUDOWA POLSKA) and one liquidation case (involving Aprivia) have been opened. The petition filed by PBG Energia has been rejected for procedural reasons.