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Michaniki: Parent Company H1 Net Jumps 53%

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Michaniki said Wednesday that its posted a profitable six-month period in 2009.

More specifically it is noted that at parent company level, net earnings after taxes, BoD fees, and tax-audit differences amounted to 15.80 million euro compared to 10.33 million euro for the corresponding period of 2008, increased by 53.0%.

Net Income before taxes amounted to 17.22 million euro compared to 14.42 million euro for the corresponding period of 2008, increased by 19.4% while earnings before interest, taxes, depreciation and amortization (EBITD) amounted to 13.01 million euro compared to 16.69 million euro over the respective period of 2008, a decrease of 22.1%;

The turnover amounted to euro 59.73 million compared to euro 91.93 million, a decrease of 35% on a yearly basis.

On a Group level, consolidated net earnings, after taxes, BoD fees and tax audit differences, and after subtracting minority rights, decreased by 72.6% and amounted to 8.53 million euro compared to 31.00 million euro for the corresponding period of 2008.

The consolidated net earnings after taxes, BoD fees, and tax-audit differences decreased by 77.6% and amounted to 8.26 million euro, compared to 36.79 million euro for the corresponding period of 2008.

Net Income before taxes amounted to 9.56 million euro compared to 49.78 million euro for the corresponding period of 2008, decreased by 77.6%.

The consolidated earnings before interest, taxes, depreciation and amortization (EBITD) amounted to 9.53 million euro compared to 54.67 million euro for the corresponding period of 2008, decreased by 82.6%.

The consolidated turnover for the first 6 months of 2009 reached 74.47 million euro  compared to 113.95 million euro for the corresponding period of 2008, decreased by 34.6%.

The decrease of earnings showed on the group level is justified mainly from the null earnings related to the valuation of the possessed investment assets during the first six months of 2009 compared to 32.77 million euro during the corresponding period of 2008, along with the decrease showed in the revenues related to the construction sector.

The total backlog of the Group is amounted at euro 1.085 million while on the company level is amounted at euro 463.0 million. The backlog from real estate activities in Russia and Ukraine for projects that have already received construction permits is amounted at euro 585.8 million.

During the first half of 2009, the company states that it confronted the difficult conditions that have arisen in the East European markets. The consequences of the undergoing financial crisis are more than clear and they are depicted on the financial results of the real estate development companies. On the face of these events, it has been decided to shift the commencement of construction works of "Rodopolis" project in German, Bulgaria and the suspension of activities of the subsidiary company "Michaniki Belarus".

On the companys domestic construction sector during the first half of 2009, there were only a few tenders for new public projects, however a boost is expected to take place from the new projects that will be put on the bidding process, projects like the Metro extensions for the city of Athens and Thessaloniki, and supplemental road projects in Attica region as they are announced from the Ministry for the Environment, Physical Planning and Public Works. Michaniki S.A. has filled its interest and participation documents for the extension of Thessalonikis Metro network. 

Moreover, the beginning of the National Strategic Reference Framework (ESPA) 2007-2013 will contribute to the increment of the companys backlog. Furthermore, it has been decided that the company will participate on the biddings for Public Private Partnerships infrastructure projects since the institutional environment of these construction projects is now mature and the companys involvement will yield revenues in the future.

The management of Michaniki continued the cutback of expenses in all areas of activities, the well-disciplined use of capital and the strict management of the sight accounts during the first half of 2009. In combination with the reduced cost of raw materials and services, the company is taking significant discounts on the construction of the real estate development projects abroad and by this way the stable course of business activities is secured. On this current context, the management of the company continued the purchase of own shares, supporting in deed the stock of the company. 
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