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Ellaktor: Press Release of Ordinary General Meeting

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In 2010, Greek companies were faced with a particularly challenging environment, as a result of the deep recession of Greek economy. Reduced revenues, higher direct and indirect taxes and limited liquidity are few of the factors which aggravate the business environment. 

The activities of ELLAKTOR Group have been severely hit by the consequences of these adverse financial circumstances. Construction activity has been hit the most, as the Greek construction sector is going through major difficulties as a whole. The public investments plan has been radically restricted, therefore the number of new projects awarded is highly limited. As a result, the Group has intensified its efforts to identify projects abroad, carefully considering projects for its participation, in selected countries. Significant projects are already under way in the Middle East (Qatar, Oman, UAE, Saudi Arabia and Kuwait), and in SE European countries such as Romania, Bulgaria, Serbia and Albania. The Russian market is also targeted. In parallel, emphasis is placed on the reduction of construction operating costs. 

With regard to Concession projects of the Group, the traffic volume has been declined due to the rise in fuel prices and the recession, which has resulted in borrowing banks suspending their financing to some of those projects. The Company is currently in negotiations with the State and Banks to resume the projects. Combined with the economic adversity of the Greek State, the above problems pose obstacles to projects already in progress. Acting through Joint Venture AKTOR SA - AKTOR CONCESSIONS SA - HELECTOR SA, the Group was awarded and recently signed a Concession Contract with the government of Saint Petersburg in relation to the Design, Construction, Financing and Operation of a residential waste management plant in the area Yanino, region of Leningrad, with an annual capacity of 350,000 tons. 

The fact that the Group holds a wide portfolio of activities with defensive characteristics to withstand the crisis acts as a safety net and offers growth prospects. 

In terms of Concessions, despite a modest reduction in traffic, Attiki Odos forms a fundamental asset, with dividend distribution scheduled for 2012. The segments of Renewable Energy Sources (RES) and Waste Management are far less affected by the financial circumstances. RES record increasing growth rates, while the outlook for Waste Management is very good, both in Greece and abroad. The development of these segments is mandatory for Greece, according to European requirements and under international conventions to which the country is signatory. The Group currently operates Wind Farms with total installed power of 118 MW, while an additional 116.5 MW are under construction, of which at least 70 MW will be commissioned in 2011. 

The positive outcome that the efforts had to obtain a gold mining licence for the Halkidiki Mines (5% direct participation and 19.3% participation in EUROPEAN GOLDFIELDS) will result in the implementation of a significant investment plan over the next years, expected to create a remarkable new business segment for AKTOR. 

The Groups high credit rating and its ability to secure funds for its plan were also stressed at the Ordinary General Meeting of ELLAKTOR Shareholders held today, 30 June, at the Groups Offices. 

Dividend 

The dividend to be distributed by ELLAKTOR to its shareholders for 2010 will be €0.03 per share, as decided at todays general meeting, increased by the dividend attributable to treasury shares held by the Company, thus bringing the total amount to be collected by shareholders to €0.030795 per share. Pursuant to the applicable tax legislation, a tax of 21% corresponding to dividends will be deducted from this amount; therefore, the net payable dividend per share will stand at €0.024328. Based on the beneficiary determination rule (record date), entitled to dividend will be those shareholders appearing in the records of the Dematerialised Securities System (SAT) on 7.7.2011. Starting from 5.7.2011, the Companys shares will be traded on ATHEX ex-dividend. The date on which payment of dividends will commence will be 12.7.2011. Dividends will be paid following the procedure set out in article 5.5 of the Athens Exchange Regulation, and the specific provisions of the SAT Operating Regulation. ALPHA BANK will be the paying bank.

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