Hidroconstructia, one of the largest constructions companies on the Romanian market, derived first-half net turnover worth 1,520 billion ROL (46 million dollars), 9% lower in dollars as compared to last year. The company's H1 net profit stood at 64 billion ROL (1.9 million dollars), down from the 74 billion ROL (2.2 million dollars) posted in the year-ago period.
"Results reported for the first six months of the year reflect the fact that construction works started in April, a month later than the year before," Hidroconstructia officials stated. The longer-than-usual cold season delayed outdoor works, which has hurt financial results of companies operating in the field of cement, concrete and aggregates, as well as constructions companies.
As a matter of fact, company officials are quite cautious with full-year financial projections. Thus, total revenues are estimated to reach 3,405 billion ROL, about 20% lower as compared to last year's results, when they stood at 128 million dollars. Company officials mention, though, that last year's estimated level of total revenues was 2,800 billion ROL, below the final results. The large gap between projections and outcome is motivated by the fact that projections are calculated on the basis of already signed contracts and sometimes the company subsequently participates in tenders for works, according to Emil Timofti, the company's general manager.
The profit rate targeted for this year stands at 5.1% of the turnover value, against last year's 7.3%.
Hidroconstructia is a company with a diverse portfolio of works on the constructions market, including civil and industrial works, roads, bridges, locally and abroad, but the company is specialised in hydropower stations.
Hidroconstructia will build the hydropower station of Islaz, the first greenfield project on the hydro-market after 1989, now estimated at 120-150 million dollars. The only bid submitted for this project comes from a consortium made up of five companies and led by Romelectro. The consortium also includes Energy Holding, Energomontaj and Institutul de Studii si Consultanta Energetica (Energy Studies and Counselling Institute - ISCE).
"For Hidroconstructia, the Islaz contract is worth about 70 million dollars," company sources told Ziarul Financiar.
As a strategy, the company's management has recently announced it planned to focus on large infrastructure projects for the following period. Thus, these projects will hold a larger share of the company's turnover during the following years. The company aims at associations of the joint venture type with Strabag and Astaldi over concrete projects, as Hidroconstructia plans to climb from the position of subcontractor for firms meeting the conditions of general entrepreneurs to that of associate-partner.
Hidroconstructia, set up in 1950, became a private company in 1995.
Pentru alte știri, analize, articole și informații din business în timp real urmărește Ziarul Financiar pe WhatsApp Channels
