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Informations
Publié par | shikun-binui-ltd |
Publié le | 25 mars 2014 |
Nombre de lectures | 6 |
Langue | English |
Extrait
PR Newswire
AIRPORT CITY, Israel, March 25, 2014
Shikun & Binui Ltd. (TASE: SKBN.TA), a global construction and infrastructure Company operating within and outside Israel, reported its financial results for the full year of 2013.
Ofer Kotler, Chief Executive Officer commented, "Today, we have completed another positive year in terms of our operational and financial performance. The sale of our holdings in the Derech Eretz Project represents our entrepreneurial spirit. We are working to leverage our know-how and experience amassed over decades, in order to expand into new territories. We successfully took several important financial actions during the year, which combined with our financial strength, will enable us to continue to execute on our expansion strategy."
Tal Raz, Chief Financial Officer, commented on the financial results, "This year we completed several important financial steps, including the successful issuance of debentures Series 6 and 7, as well as the exchange of some of the short duration debenture into longer duration debentures. The upgrading of the credit ratings by Ma'alot and Midroog, the Israeli arms of international rating agencies Moody's and S&P, is a further testimony to the Group's financial strength. The cash and cash equivalents balance of NIS 2.2 billion as at the end of 2013, and the strong cash flow we have generated, will enable us to operate in a financial optimal way in the coming years while expanding our operations in Israel and globally."
2013 Highlights
Summary of the Results
Group revenues from project work performed and sales totaled NIS 6,370 million in 2013, compared with NIS 6,063 million in 2012, representing 5% growth.
Gross profit in 2013 totaled NIS 1,095 million, compared with NIS 1,183 million in 2012. Most of the decrease was due to the decline in the gross profit of the real estate in Israel and real estate outside of Israel segments, as will be detailed below.
Group operating profit for the year totaled NIS 840.5 million, compared with NIS 786.4 million in 2012.
Net financing expenses in 2013 totaled NIS 163 million, compared with NIS 133 million in 2012. The increase was driven mainly by the rise in the Consumer Price Index in 2013 of 1.9%, compared with 1.44% in 2012, which impacted long-term credit costs. The increase in the amount of credit (issuance of Series 6 and 7 debentures) and the receipt of bank loans also contributed to an increase of NIS 15 million in financing expenses.
Net profit totaled NIS 393 million, compared with NIS 448 million in 2012, a decrease driven by the factors discussed previously.
The Company reported positive cash flows from operating activities totaling NIS 719 million, compared with NIS 558 million last year, due mainly to the increase in the volume of collections, compared with last year.
Cash and cash equivalents balance as of December 31, 2012 totaled NIS 1.8 billion.
Segment Analysis
Revenues from the infrastructure and construction outside of Israel segment were NIS 2,880 in 2013, a decrease of NIS 241 million (7.7%) from NIS 3,121 million in 2012. The decrease was due mainly to the 6% decrease in the average dollar exchange rate in 2013 (a total effect of NIS 187 million) and from the slowdown in projects in Ghana and Guatemala, the halt in work in the Republic of Benin and the lower volume of work performed in an Azerbaijan project. In contrast, there was revenue growth in the activities in Nigeria. Gross profit in the infrastructure and construction outside of Israel segment totaled NIS 602 million, compared with NIS 599 million in 2012. The gross margin increased from 19% to 21%, driven mainly by the projects in Uganda and Tanzania. Contrarily, the Company posted a loss in the project in the Benin Republic. Pre-tax profit in the infrastructures and construction outside of Israel segment in 2013 amounted to NIS 471 million (16.3% of sales), compared with NIS 451 million (14.4% of sales) in 2012. The company reported a 5.6% growth in order backlog in this segment to NIS 7.5 billion as of 2013-end.
In the infrastructure contracting in Israel segment, revenues totaled NIS 1,991 million in 2013 compared with NIS 1,725 million in 2012, a 15.4% growth, driven mainly by the increase in the volume of work performed in the road works and concrete plants division. Gross profit increased from NIS 105 million in 2012 to NIS 112 million in 2013, a growth of 6.7%. Operating profit grew from NIS 29 million to NIS 50 million, and the margin increased from 1.6% to 2.5%. Pre-tax income in the infrastructure constructing in Israel segment totaled NIS 66.4 million (3.3% of the segment's revenues), compared with NIS 49.7 million (2.9% of segment's revenues) in 2012.
Revenues of the real estate development in Israel segment total NIS 1,462 million, compared with NIS 1,203 million in 2012, an increase of 21.5%, driven mainly by the
NIS 111 million increase in revenues from sales of non-residential projects, an increase of NIS 87 million in revenue from work performed on the student dormitories in Tel Aviv and a contribution of NIS 71 million in revenues from the sale of residential units. In 2013, the Company handed over 807 units, compared with 628 residential units in 2012. It should be noted that revenues are recognized when units are handed over to the customer (and not when the sales contract is signed).
Gross profit in this segment totaled NIS 343 million, compared with NIS 478 million in 2012. The decrease is due to the change in the mix of the units that were populated, compared with 2012. In 2012, the residential units populated were mainly located in exclusive areas and on historical-cost accounted plots of land, recorded at low cost, thereby generating relatively high gross margins for the Company. It should be noted that the Company has an extensive inventory of historical-cost accounted plots of land that are not re-valued, and are recorded on the Company's books at their historical cost. During the period, the Company reported a gain of NIS 55 million, derived from insurance on a sales agreement signed with the Ramat Gan Municipality. The pre-tax profit of this segment amounted to NIS 307.5 million, compared with NIS 370.8 million in 2012. The decrease was driven mainly by the different mix of residential units between the periods, as noted.
In the real estate development outside of Israel segment, revenues totaled NIS 14 million in 2013, compared with NIS 17 million in 2012. This segment's operating loss increased from NIS 19 million in 2012 to NIS 49 million in 2013. This NIS 30 million increase was due mainly to a NIS 27 million provision for a reduction in the value of land in Hungary.
In the renewable energy segment, revenues totaled NIS 231 million, compared with
NIS 126 million in 2012. The increase was driven mainly by the construction of photovoltaic installations on land and roofs. Gross profit in this segment totaled NIS 50 million in 2013, compared with NIS 18 million in 2012. The increase was driven by the growth in the volume of activity. Pre-tax loss in this segment totaled NIS 40 million, due mainly to the write-down of NIS 35 million, due to the effect of the change in regulation in Spain on the subsidiary ("Giltz").
Revenues in the water segment totaled NIS 39 million in 2013, compared with NIS 38 million in 2012. The segment's loss in 2013 was NIS 37 million, compared with a loss of NIS 17 million in 2012, due mainly to the impairment provision on the concession to operate, maintain and develop the Pardess Hana – Carcour Water Corporation.
In the concessions segment, revenues in 2013 totaled NIS 106 million, compared with NIS 144 million in 2012 – the decrease is due mainly to the end of the construction period of a BOT project for overhauling roads in the North of Israel and a transition to the operating period of the project. Pre-tax profit in this segment amounted to NIS 20.7 million, compared with NIS 44.8 million in 2012. The decrease was due mainly to the financing income attributed to this segment of NIS 36.4 million in 2013, compared with NIS 82.6 million in 2012 – driven by the sale of the Group's holdings in Derech Eretz.
Key Financial Results for Year 2013
NIS millions | Year Ended December 31 | Difference | % change | ||
2013 | 2012 | ||||
Revenues | 6,370 | 6,063 | 307 | 5% | |
Profit for the period | 393 | 448 | (55) | -12% | |
Equity | 1,146 | 1,139 | 7 | 0.6% | |
Total assets | 10,523 | 10,597 | (74) | - | |
Working capital | 1,402 | 916 | 486 | 53% | |
Cash flow from operating activities | 719 | 558 | 161 | 29% | |
Orders backlog | 10,417 | 9,692 | 725 | 7% | |
Key Financial Results for Fourth Quarter of 2013