Polimex-Mostostal with a decrease in revenues in the first half of the year

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In the first half of 2019 Polimex-Mostostal recorded a consolidated net loss of PLN 12m with sales revenues of PLN 750m. The Group’s order portfolio amounts to over PLN 2.3bn.

Less loss

Polimex-Mostostal recorded a consolidated net loss of PLN 12.1m in January-June 2019, compared to a loss of PLN 20.8m in the corresponding period of last year. The Group’s sales revenues in the first half of the year amounted to PLN 750.3m, compared to PLN 810.4m in the first half of 2018. This means a decrease by 7% y-o-y.

The decrease in revenues was caused by lower sales to external customers in the segment of production and industrial construction. They decreased by PLN 43.8m and PLN 10.8m, respectively, the company said in the report. The power engineering segment recorded a decrease by PLN 4m and the other operating segments were at a similar level as last year.

The largest share in the group’s revenues was held by the production segment (41%), for which Mostostal Siedlce is mainly responsible. The energy sector accounted for 40%, the oil, gas and chemical sectors for 16% and the industrial construction sector for 2%.

Robust order book

The current order portfolio of Polimex-Mostostal Group, which is reduced by sales attributable to consortium members, amounts to approximately PLN 2.35bn. This amount includes the won but unsigned contract for Zaklady Azotowe Pulawy in the amount of PLN 1.16bn. From this contract, in 2019 there will be PLN 750m for 2019 and in 2020. – PLN 796m for 2021. – PLN 415m, and for further years PLN 387m.

The company plans to increase the portfolio of orders for foreign projects. Currently, Polimex-Mostostal implements projects in Belgium, the Netherlands, Germany, Hungary and Finland. The Group intends to establish Polimex Mostostal GmbH and Polimex Mostostal B.V. in Germany and the Netherlands in order to strengthen the effectiveness of execution and supervise the execution of contracts on these markets.

The Group’s strategy on the Polish market assumes the registration of Polimex Mostostal Capital Group in the tender systems of the American and NATO armies. The Company expects an increased number of tenders in connection with the planned increase in the number of U.S. troops in Poland. It also expects to obtain certificates of admission to tenders from the Polish military administration.

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