Budimex’s profit in Q1 2019 dropped by more than a half
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The Budimex Group recorded a consolidated net profit of PLN 29m in Q1 2019, according to the company’s estimates. This means a decrease by PLN 34m (-54%) compared to the result achieved in the corresponding period of last year (PLN 63m).
The decrease in the consolidated net result is mainly caused by the decrease in profitability in the construction segment. The reason for this is primarily the increase in prices of materials and subcontracting services, with which the entire construction industry is struggling. In the construction segment, the company achieved a net profit of PLN 6m in the first quarter of 2019. This result means a decrease by PLN 33m (-85%) when compared to the same period last year.
The Management Board of Budimex recommended to the Ordinary General Meeting of Shareholders to take a decision on the payment of dividend for 2018 in the amount of PLN 6.30 per share. Out of the net profit for 2018 of PLN 305.4m, an amount of approx. 50% was proposed to be allocated to dividend. The remaining part of the profit is planned to be allocated to the company’s reserve capital.
The company has recently signed a contract for the construction of the Walbrzych bypass within the national road no. 35. The value of the investment will amount to PLN 249.6m. The deadline for completion of the works is 20 months from the conclusion of the contract, i.e. until the end of 2020.