30/2020 - Initial estimated financial results of Trakcja S.A. for 9 months ended on 30 September 2020

The Management Board of Trakcja S.A. (”Company”) hereby informs that on 23 October 2020 the Company completed the process of cyclical reviews of long-term contracts and collection of financial data for the purpose of preparation of the Company’s individual financial statements for the 9 months ended on 30 September 2020. Therefore, the Company announces the initial estimated results for 9 months of 2020:

 

Sales revenues: PLN 483,756 thousand

Gross result on sales: PLN 976 thousand

EBITDA: PLN -8,357 thousand

Net profit/loss: PLN -31,766 thousand

 

The factor, which had substantial influence on the Company’s gross sales for the 9 months of 2020 was the increase of fixed costs caused by a prolongation of execution of contracts as a result of numerous circumstances including:

1. A delayed financial restructuring process;

2. Execution of other parallel infrastructural investments, which affected:

• The pace of obtaining administrative decisions;
• Changes in project schedules, through overlapping execution by other sectors, which exceeded the scope of the Company’s works (e.g. rail traffic control);
• Worsened availability of materials as a result of a build-up of works in the infrastructural sector;

3. Current restrictions related with the COVID pandemics.

 

Moreover, the aforementioned EBITDA and net result were affected by costs related with the financial restructuring process.

 

For two railway contracts, the Company continues to recognize revenues up to the level of incurred costs, pursuant to IFRS 15 section 45.

As a result of the conducted cyclical review of contracts, budgets were updated in terms of the nature of costs, amounts, spread over time, and uncertainty as to revenues and cash flows from performed contracts. During budget updates, an analysis of opportunities and threats was conducted, which identified and accounted for technical, performance, and liquidity risks, and risks related with prolonged contract execution.

 

During Q3 2020, the influence of contract budget updates on the Company’s gross result was negative and amounted to PLN -9,554 thousand.

The construction contract portfolio of Trakcja S.A. as of 31 August 2020 was at PLN 1,986 million (excluding revenues allocated to consortium members).

During the 8 months ended on 31 August 2020, Trakcja S.A. signed construction contracts with the total value of PLN 59 million (excluding revenues allocated to consortium members).

The aforementioned results do not account for impairment tests.

Due to the initial nature of data, final calculations as well as any changes in the level of influence of the aforementioned factors on the results for the 3 quarters of 2020 shall be presented in the Company’s annual report for Q3 2020, which shall be published on 26 November 2020 according to the adopted calendar of periodic reports publication.

 

Legal basis:

Article 17.1 of the Market Abuse Regulation (MAR)

 

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