IR press releases

PBG Group's performance in the four quarters of 2011 above expectations. The Group delivers in line with its 2011 guidance

The Group's revenue after the four quarters of 2011 was up 36% year on year, at PLN 3.73bn.

• Gross profit grew by 22%, to PLN 416m.
• EBITDA went up by 19%, to PLN 397m.
• Operating profit up by 17% year on year, at PLN 336.2m.
• Net profit amounted to 206.5m, an improvement of 9%.
• As at January 1st 2012, the value of the PBG Group's order book was at a three-year high of PLN 5.9bn.

The PBG Group met and exceeded last year's financial forecast: at PLN 3.73bn its revenue after the four quarters of 2011 exceeded the anticipated PLN 3bn by 24%, operating profit of PLN 336m was 29% higher than the forecast of PLN 260m, while net profit of PLN 206.5m exceeded the PLN 200m target by 3%.
The strong growth of revenue in the four quarters of 2011 was largely a result of the execution of road contracts, chiefly motorway construction, and contracts in the industrial construction segment, where the Group was executing stadium projects. The margins they offer are markedly lower than margins usually earned by the Group. As the combined share of the two segments in the Group's total revenue stood at 51%, they weighed down on profit margins.

This effect of the road projects was partially offset by contracts in the gas, oil and fuels segment (the LMG crude oil production facility, the LNG terminal in Świnoujście and the underground gas storage facility in Wierzchowice). On the back of these contracts, the Group derived PLN 851m in revenue from the oil and gas segment. The water segment also substantially contributed to the Group’s top line, adding over PLN 510m for the whole year.

The acquisitions of Energomontaż Południe and Rafako marked the beginning of an important shift in the Group’s business and its repositioning towards power engineering. Revenue of Energomontaż Południe, consolidated by the PBG Group since July 1st 2011, and of Rafako, consolidated since November 1st 2011, amounted to a total of PLN 413m. The acquisitions will allow PBG to derive a greater share of revenue from outside the road and general construction segments. This is confirmed by the structure of the Group's order book, in which power enginnering contracts account for 32.7% of all contracts (as at January 1st 2012).
The largest contributor to the Group’s performance was PBG. At approx. PLN 1bn, PBG's revenue accounted for 27% of the Group's total revenue. At the same time, the Company delivered PLN 216m in operating profit, which contributed 64% to the Group's consolidated operating result, while its separate net profit of nearly PLN 123m contributed almost 60% to the Group's consolidated earnings.

CONSOLIDATED PERFORMANCE IN Q4 2011

In Q4 2011, the PBG Group's revenue went up by 58% year-on-year, from PLN 855.3m to PLN 1.353bn. At the same time, gross profit increased by 48%, from PLN 110.7m in Q4 2010 to PLN 160.3m in Q4 2011. Operating profit for the quarter fell from PLN 110.8m to PLN 70.1m, which represents a year-on-year decrease of 37%. The operating result was negatively affected by a non-recurring event, i.e. a reduction in fair-value measurement of the Rafako shares by PLN 21.9m relative to the share purchase price (the reduction resulted from a change in the consolidation method and was recognised in other expenses).

Net profit attributable to owners of the Parent decreased year-on-year by 57%, to PLN 30.9m, from PLN 71.44m in the comparable period of the previous year. This was mainly attributable to the high income tax rate of 32.5%, which followed chiefly from non-disclosure by two of our subsidiaries of income tax in the financial statements for nine months ended September 30th 2011. As a result, the tax settled in December 2011 comprised tax charged on these companies’ income for the entire financial year. Another factor contributing to the high tax level was derecognition of a deferred tax asset on unused tax loss.

The PBG Group provides specialist construction services in the area of gas/oil production and fuel facilities, as well as general contractor services in the power, infrastructural, industrial, road and housing construction segments.

Contact person:
Kinga Banaszak-Filipiak
Spokesperson
IR Director
+48 691 470 491
kinga.banaszak@pbg-sa.pl

< lista informacji prasowych