Rafako: revenue decline in 2018

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Rafako’s revenue in 2018 reached PLN 1.27bn, down 29% y-o-y. In turn, net profit increased by over 700% y-o-y.

Revenues lower by 29%

In 2018, Rafako recorded PLN 1.27bn of consolidated sales revenue, compared to PLN 1.78bn a year earlier. This means a decrease by 29% y-o-y. The company informed that this is mainly a result of the progress of works on the construction of the Jaworzno power unit (which is in line with the adopted schedule for the agreement) and the lower level of Rafako’s sales compared to the plan, which in turn is related to the postponement of works on foreign contracts, Lombok and Vilnius.

Project Jaworzno is the biggest contract

Over 46% of the Rafako Group’s revenues in 2018 were generated by the special purpose vehicle established to execute the largest contract in the company’s order book – the Jaworzno project (910 MW). About half of the sales were generated by the parent company namely Rafako, while the remaining few percent were the responsibility of other companies in the group – mainly Rafako Engineering.

Increase in profit by over 700%

Rafako recorded a consolidated net profit of PLN 33.59m in 2018, compared to a profit of PLN 4.16m in 2017. This means an increase of over 707% y-o-y. The operating profit reached PLN 40.53m, compared to PLN 48.81m profit a year earlier.

Robust order backlog

As at 1 January 2019, the group’s portfolio included orders worth PLN 2.82bn, of which PLN 2.35bn were placed this year. The largest share in the order backlog are contracts in the area of power engineering and environmental protection (86%). The oil and gas segment accounts for 14% of the portfolio’s value.

Rafako is Europe’s largest manufacturer of boilers and energy equipment for environmental protection. President of the Management Board and CEO of the company since 30 October 2018 is Jerzy Wiśniewski. He replaced Agnieszka Wasilewska-Semail, of whom we informed at the time.