Shikun & Binui Announces Financial Results for the Third Quarter & First Nine Months of 2017
- 9M 2017 Revenues Totaled ~NIS 5.3b Compared With ~NIS 3.7b For 9M 2016; Net Profit for 9M 2017 Totaled NIS 142m -
AIRPORT CITY, Israel, Nov. 29, 2017 /PRNewswire/ -- Shikun & Binui Ltd. (TASE: SKBN.TA), a global construction and infrastructure company headquartered in Israel, today reported its financial results for the third quarter and first nine months ended September 30, 2017.
CONSTRUCTION
Solel Boneh
- Won engineering contracts from Israel's Ministry of Defense totaling ~NIS 640 million
- Executed approximately NIS 2.8 million of projects in the first 9 months of the year
- After the report date, the Company signed an agreement to acquire Menora, a private company that designs, builds and maintains lighting systems, train barrier systems, traffic light systems, electrical systems and more, and employs 235 workers. The deal is contingent upon the fulfillment of certain terms and is not expected to have a material effect on the Company's financial results. The acquisition is in line with Shikun & Binui's strategy to expand its construction-related services and offerings and will be complementary and synergistic to the full range of the Company's activities in Israel and throughout the world.
- Revenues for the first nine months of 2017 totaled ~NIS 2.8 billion. Mega projects in process: Gilboa Pumped Storage, Ashalim Thermo Solar, Tel Aviv Light Rail (Western Section), Government Campus Generi 2 in Jerusalem and others.
SBA/SBI
- Won and began executing a variety of new projects including:
- Projects that were in the backlog: Projects totaling $60m. Project in Ivory Coast of $60m and a project in Mozambique totaling $10m
- Projects that has not yet in the backlog: Airport in Uganda totaling $300m, project in Ethiopia totaling $120m and a project in Tanzania totaling $50m
- Nigeria:
- Revenues from Nigerian projects for the first nine months of 2017 totaled ~US$ 125 million. Collections for the first nine months totaled ~US$ 101 million.
- As a result of Nigeria's central bank's policy change, the company was able to purchase a significant amount of USD at the NIFEX exchange rate.
Development of the Company's Backlog (in NIS millions)
- The backlog as of September 30, 2017 does not include additional construction projects totaling ~NIS 2.6 billion that the Company's Concessions, Renewable Energy, Real Estate and Infrastructure segments won in Israel and in international markets up to or after the report date.
REAL ESTATE
Apartment Sales
- During the first nine months of 2017, the Company sold ~1,193 apartments (100% share) totaling ~NIS 767 million, including ~767 units in Europe and ~426 units in Israel.
- In Europe, most of the sales were in Poland, where ~365 units were sold; in the Czech Republic, ~144 units were sold; in Romania, ~145 units were sold, and ~113 units were sold in Serbia.
- In Israel, the Company began planning for the building of 657 apartments and commercial space in Or Yam neighborhood in Or Akiva. In addition, marketing was initiated for new projects in Givat Shmuel, Ashkelon, Kfar Yona and Harish, and building began for projects in Rishon Letzion and Givat Shmuel.
Land in Israel
- The Company signed an agreement to sell its rights in land in North Tel Aviv. The Company is expected to record a profit of ~NIS 89 million from the transaction before tax.
- Progress with the plan for the Old Tel Aviv Bus Station: the plan was approved for filing. Under the framework of the plan1, tens of new residential towers will be built with a combined total of 1,160 housing units, commercial space, a dance center and an international food court.
1 100%, including partner share (correct as of 31.12.2016)
Following is additional data regarding the Company's sale of apartments (signed contracts) during the first nine months of 2017:
Apartment |
Consolidated |
Companies |
|
|
|||
Sales (NIS millions) |
766 |
650 |
- |
Number of apartment sale contracts signed |
426 |
365 |
- |
Average price of apartments sold (NIS thousands) |
1,799 |
1,781 |
- |
|
|||
Sales (NIS millions) |
377 |
212 |
56 |
Number of apartment sale contracts signed |
767 |
495 |
81 |
Average price of apartments sold (NIS thousands) |
492 |
429 |
693 |
Note: recognition of revenues from apartment sales occurs at the time of delivery to the customer, not at the time of sale
Following is data regarding the Company's delivery of apartments to customers during the first nine months of 2017:
Consolidated |
Companies |
|
|
||
Revenues from apartments delivered (NIS millions) |
1,242 |
- |
Number of units delivered |
762 |
- |
Average price of apartments delivered (NIS thousands) |
1,630 |
- |
|
||
Revenues from apartments delivered (NIS millions) |
90 |
35 |
Number of units delivered |
265 |
59 |
Average price of apartments delivered (NIS thousands) |
338 |
597 |
PROJECTS AND INCOME GENERATING ASSETS (IGA)
Realizing Value, continued expansion of O&M activities and freeing cash for use in new projects
- The Company has entered into the process of selling 45% of its rights in the Carmel Tunnels project and 40% of its rights in the North Roads project. Purchase offers have been received from a group of limited investors (including institutional investors), and the Company intends to serve as the General Partner. Upon completion of the transaction, the Company expects to recognize a profit of NIS 250-300 million and cash flow of ~NIS 580 million.
New Concessions projects in Israel (to be executed by Solel Bonei):
- Regional government campus in Nazareth: total project value - ~NIS 400 million
- Courthouse in Hadera: total project value - ~NIS 150 million
Advances in the portfolio of existing Energy projects:
- Financial closing of Ashalim Project of 120MW Photo Voltari PV
- Received a license to convert the Etgal power plant to natural gas and to expand its generation capacity from 26MW to 186MW
- Won the Israel Electric Company tender for a 64MW Photo-Voltaic (PV) project
About the Shikun & Binui Group
The Shikun & Binui Group is a global construction and infrastructure company that operates in Israel and internationally in seven segments: 1) infrastructure and construction contracting outside of Israel; 2) infrastructure and construction contracting within Israel; 3) real estate development within Israel; 4) real estate development outside of Israel; 5) renewable energy; 6) concessions; and 7) water. The Group's activities focus on large, highly complex projects carried out for entities in private and public sectors with a focus on sustainability.
This summary announcement was prepared solely for the convenience of the reader and does not replace Shikun & Binui Ltd.'s (hereafter – "the Company") full report. The information contained in this announcement is, by its nature, incomplete. All of its contents are provided as a supplement to the Company's report, and are subject to the declarations therein stated. This announcement includes forecasts, assessments, estimates and other information relating to the Company or its subsidiaries, or to other parties or to future events and matters, the extent of whose realization is not certain and is not under the sole control of the Company (forward-looking information, as defined in the Securities Law-1968). The key facts and data serving as the basis for this information are facts and data, among others, related to the current status of the Company and its businesses, facts and data relating to the current status of the operating segments in which the Company engages in its areas of operation, and other macroeconomic facts and data known to the Company on the preparation date of this presentation.
It is understood that forward-looking information does not constitute a fact and is based solely on subjective assessments. Forward-looking information is uncertain and for the most part, is not under the Company's control. The realization or non-realization of the forward-looking information will be influenced, among others, by the risk factors that characterize the Company's operations, as well as developments in the general environment and external factors that impact the Company's operations. The Company's future results and achievements could differ significantly from those presented in this presentation. The Company is not obligated to update or modify the said forecast or assessment, and is not obligated to update this announcement. This announcement does not constitute an offer to purchase the Company's securities or an invitation to receive such offers. An investment in securities in general, and in the Company in particular, carries risk. One must take into account that past data do not necessarily indicate future performance.
Condensed Consolidated Interim Financial Statements |
||||
Condensed Consolidated Interim Statement of Financial Position as at |
||||
September 30 |
September 30 |
December 31 |
||
2017 |
2016 |
2016 |
||
(Unaudited) |
(Audited) |
|||
NIS thousands |
NIS thousands |
NIS thousands |
||
Assets |
||||
Cash and cash equivalents |
1,716,625 |
2,077,297 |
2,993,490 |
|
Bank deposits |
503,706 |
186,336 |
290,154 |
|
Short-term loans and investments |
73,513 |
152,489 |
92,028 |
|
Short-term loans to investee companies |
11,969 |
27,861 |
349 |
|
Trade receivables – accrued income |
2,585,956 |
2,543,666 |
2,060,621 |
|
Inventory of buildings held for sale |
2,296,021 |
2,602,757 |
2,468,749 |
|
Receivables and debit balances |
481,375 |
461,717 |
501,090 |
|
Other investments, including derivatives |
146,088 |
11,037 |
93,138 |
|
Current tax assets |
77,630 |
45,100 |
37,217 |
|
Inventory |
186,572 |
194,439 |
225,461 |
|
Assets classified as held for sale |
116,776 |
521,998 |
518,106 |
|
Total current assets |
8,196,231 |
8,824,697 |
9,280,403 |
|
Receivables in respect of concession arrangements |
921,586 |
1,163,604 |
822,103 |
|
Non-current inventory of land (freehold) |
815,904 |
844,245 |
789,294 |
|
Non-current inventory of land (leasehold) |
330,349 |
339,446 |
338,941 |
|
Investment property, net |
1,021,194 |
854,954 |
924,557 |
|
Land rights |
13,129 |
15,305 |
13,021 |
|
Receivables, loans and deposits |
526,622 |
414,043 |
386,252 |
|
Investments in equity-accounted investees |
645,224 |
607,565 |
640,993 |
|
Loans to investee companies |
565,362 |
413,058 |
562,767 |
|
Deferred tax assets |
134,396 |
100,684 |
135,600 |
|
Property, plant and equipment, net |
909,429 |
1,063,525 |
1,041,533 |
|
Intangible assets, net |
198,769 |
260,427 |
242,586 |
|
Total non-current assets |
6,081,964 |
6,076,856 |
5,897,647 |
|
Total assets |
14,278,195 |
14,901,553 |
15,178,050 |
Condensed Consolidated Interim Financial Statements |
||||
Condensed Consolidated Interim Statement of Financial Position as at (cont'd) |
||||
September 30 |
September 30 |
December 31 |
||
2017 |
2016 |
2016 |
||
(Unaudited) |
(Audited) |
|||
NIS thousands |
NIS thousands |
NIS thousands |
||
Liabilities |
||||
Short-term credit from banks and others |
1,187,957 |
1,086,572 |
1,045,048 |
|
Subcontractors and trade payables |
1,401,900 |
1,451,091 |
1,280,799 |
|
Short-term employee benefits |
128,344 |
107,720 |
135,529 |
|
Payables and credit balances including derivatives |
560,454 |
722,811 |
690,275 |
|
Current tax liabilities |
94,189 |
126,905 |
122,889 |
|
Provisions |
279,160 |
294,381 |
310,003 |
|
Payables - customer work orders |
1,478,620 |
1,246,536 |
1,751,025 |
|
Advances received from customers |
1,167,227 |
1,648,280 |
1,443,812 |
|
Dividend payable |
7,764 |
- |
16,940 |
|
Liabilities classified as held for sale |
- |
206,893 |
415,676 |
|
Total current liabilities |
6,305,615 |
6,891,189 |
7,211,996 |
|
Liabilities to banks and others |
2,433,375 |
2,606,142 |
2,262,410 |
|
Debentures |
3,394,548 |
3,307,795 |
3,314,628 |
|
Employee benefits |
49,788 |
54,287 |
54,056 |
|
Deferred tax liabilities |
87,244 |
53,299 |
123,849 |
|
Provisions |
106,522 |
150,535 |
109,530 |
|
Excess of accumulated losses over cost of investment |
||||
and deferred credit balance in investee companies |
26,653 |
27,647 |
30,440 |
|
Total non-current liabilities |
6,098,130 |
6,199,705 |
5,894,913 |
|
Total liabilities |
12,403,745 |
13,090,894 |
13,106,909 |
|
Equity |
||||
Total equity attributable to owners |
||||
of the Company |
1,688,278 |
1,637,315 |
1,892,058 |
|
Non-controlling interests |
186,172 |
173,344 |
179,083 |
|
Total equity |
1,874,450 |
1,810,659 |
2,071,141 |
|
Total liabilities and equity |
14,278,195 |
14,901,553 |
15,178,050 |
Condensed Consolidated Interim Financial Statements |
|||||
Condensed Consolidated Interim Statement of Income |
|||||
For the |
|||||
For the nine-month period ended |
For the three-month period ended |
year ended |
|||
September 30 |
September 30 |
September 30 |
September 30 |
December 31 |
|
2017 |
2016 |
2017 |
2016 |
2016 |
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
(Unaudited) |
(Audited) |
|
NIS thousands |
NIS thousands |
NIS thousands |
NIS thousands |
NIS thousands |
|
Revenues from work |
|||||
performed and sales |
5,272,248 |
3,673,402 |
1,786,828 |
1,489,490 |
5,378,963 |
Cost of work performed |
|||||
and sales |
(4,756,828) |
(3,172,016) |
(1,628,649) |
(1,264,847) |
(4,541,744) |
Gross profit |
515,420 |
501,386 |
158,179 |
224,643 |
837,219 |
Gain on sale of |
|||||
investment property |
640 |
49,654 |
- |
2,988 |
70,543 |
Selling and marketing expenses |
(28,599) |
(22,386) |
(9,311) |
(8,117) |
(32,318) |
Administrative and general |
|||||
expenses |
(277,119) |
(262,576) |
(90,382) |
(95,798) |
(366,479) |
Share of profits |
|||||
of equity accounted |
|||||
investees (net of tax) |
20,440 |
54,790 |
3,809 |
33,366 |
81,172 |
Other operating income |
99,864 |
217,817 |
15,731 |
72,656 |
451,797 |
Other operating expenses |
(41,629) |
(9,974) |
(7,906) |
(5,389) |
(41,762) |
Operating profit |
289,017 |
528,711 |
70,120 |
224,349 |
1,000,172 |
Financing income |
153,554 |
133,785 |
70,858 |
54,115 |
182,715 |
Financing expenses |
(291,761) |
(400,475) |
(100,454) |
(115,726) |
(566,483) |
Net financing expenses |
(138,207) |
(266,690) |
(29,596) |
(61,611) |
(383,768) |
Profit before taxes |
|||||
on income |
150,810 |
262,021 |
40,524 |
162,738 |
616,404 |
Taxes on income |
(9,250) |
(59,481) |
21,779 |
(21,455) |
(136,455) |
Profit for the period |
141,560 |
202,540 |
62,303 |
141,283 |
479,949 |
Attributable to: |
|||||
Owners of the Company |
106,972 |
184,558 |
51,911 |
128,542 |
445,771 |
Non-controlling interests |
34,588 |
17,982 |
10,392 |
12,741 |
34,178 |
141,560 |
202,540 |
62,303 |
141,283 |
479,949 |
|
Basic earnings per |
|||||
share (in NIS) |
0.27 |
0.46 |
0.13 |
0.32 |
1.12 |
Diluted earnings per |
|||||
share (in NIS) |
0.27 |
0.46 |
0.13 |
0.32 |
1.12 |
Consolidated Financial Statements |
||||||||||
Operating Segments |
||||||||||
For the nine month period ended September 30, 2017 (unaudited) |
||||||||||
Infrastructures |
Infrastructures |
|||||||||
and |
and |
Real estate |
Real estate |
|||||||
construction |
construction |
development |
development |
Renewable |
||||||
(international) |
(Israel) |
(Israel) |
(international) |
Concessions |
energy |
Other |
Adjustments |
Consolidated |
||
NIS thousands |
||||||||||
Total external revenues |
1,345,643 |
2,539,870 |
1,345,738 |
181,494 |
135,530 |
29,045 |
30,202 |
(335,274) |
5,272,248 |
|
Inter-segment revenues |
- |
229,394 |
57 |
- |
- |
- |
- |
(229,451) |
- |
|
Total revenues |
1,345,643 |
2,769,264 |
1,345,795 |
181,494 |
135,530 |
29,045 |
30,202 |
(564,725) |
5,272,248 |
|
Segment profit (loss) before |
||||||||||
income tax |
62,345 |
79,645 |
129,933 |
(726) |
107,864 |
(4,766) |
(63,208) |
(160,277) |
150,810 |
For the nine month period ended September 30, 2016 (unaudited) |
||||||||||
Infrastructures |
Infrastructures |
|||||||||
and |
and |
Real estate |
Real estate |
|||||||
construction |
construction |
development |
development |
Renewable |
||||||
(international) |
(Israel) |
(Israel) |
(international) |
Concessions |
energy |
Other |
Adjustments |
Consolidated |
||
NIS thousands |
||||||||||
Total external revenues |
1,053,848 |
1,785,277 |
692,841 |
83,233 |
266,042 |
36,156 |
29,910 |
(273,905) |
3,673,402 |
|
Inter-segment revenues |
97,501 |
296,339 |
57 |
- |
- |
- |
- |
(393,897) |
- |
|
Total revenues |
1,151,349 |
2,081,616 |
692,898 |
83,233 |
266,042 |
36,156 |
29,910 |
(667,802) |
3,673,402 |
|
Segment profit (loss) before |
||||||||||
income tax |
70,608 |
75,324 |
144,960 |
(14,963) |
177,311 |
21,912 |
(29,187) |
(183,944) |
262,021 |
Consolidated Financial Statements |
|||||||||
Operating Segments (cont'd) |
|||||||||
For the three month period ended September 30, 2017 (unaudited) |
|||||||||
Infrastructures and construction (international) |
Infrastructures and construction (Israel) |
Real estate development (Israel) |
Real estate development (international) |
Concessions |
Renewable energy |
Other |
Adjustments |
Consolidated |
|
NIS thousands |
|||||||||
Total external revenues |
369,825 |
810,982 |
609,029 |
75,300 |
29,881 |
10,208 |
6,241 |
(124,638) |
1,786,828 |
Inter-segment revenues |
- |
70,839 |
19 |
- |
- |
- |
- |
(70,858) |
- |
Total revenues |
369,825 |
881,821 |
609,048 |
75,300 |
29,881 |
10,208 |
6,241 |
(195,496) |
1,786,828 |
Segment profit (loss) before |
|||||||||
income tax |
(3,654) |
29,337 |
51,322 |
3,525 |
29,655 |
(1,476) |
(12,359) |
(55,826) |
40,524 |
For the three month period ended September 30, 2016 (unaudited) |
|||||||||
Infrastructures |
Infrastructures |
||||||||
and |
and |
Real estate |
Real estate |
||||||
construction |
construction |
development |
development |
Renewable |
|||||
(international) |
(Israel) |
(Israel) |
(international) |
Concessions |
energy |
Other |
Adjustments |
Consolidated |
|
NIS thousands |
|||||||||
Total external revenues |
387,075 |
668,493 |
362,288 |
32,309 |
132,219 |
9,597 |
7,922 |
(110,413) |
1,489,490 |
Inter-segment revenues |
45,374 |
136,989 |
19 |
- |
- |
- |
- |
(182,382) |
- |
Total revenues |
432,449 |
805,482 |
362,307 |
32,309 |
132,219 |
9,597 |
7,922 |
(292,795) |
1,489,490 |
Segment profit (loss) before |
|||||||||
income tax |
76,530 |
34,279 |
73,162 |
(5,392) |
41,776 |
18,489 |
(15,443) |
(60,663) |
162,738 |
Consolidated Financial Statements |
|||||||||
Operating Segments (cont'd) |
|||||||||
For the year ended December 31, 2016 (audited) |
|||||||||
Infrastructures |
Infrastructures |
||||||||
and |
and |
||||||||
construction |
construction |
development |
development |
Renewable |
|||||
(international) |
(Israel) |
(Israel) |
(international) |
Concessions |
energy |
Other |
Adjustments |
Consolidated |
|
NIS thousands |
|||||||||
Total external revenues |
1,489,712 |
2,324,394 |
1,278,810 |
146,254 |
427,383 |
44,679 |
40,259 |
(372,528) |
5,378,963 |
Inter-segment revenues |
142,574 |
444,259 |
76 |
- |
- |
- |
- |
(586,909) |
- |
Total revenues |
1,632,286 |
2,768,653 |
1,278,886 |
146,254 |
427,383 |
44,679 |
40,259 |
(959,437) |
5,378,963 |
Segment profit (loss) before |
|||||||||
income tax |
157,330 |
82,607 |
297,152 |
(2,131) |
355,193 |
22,192 |
(46,712) |
(249,227) |
616,404 |
IR Contacts: |
|
Company |
External IR |
Inbal Uliansky |
Ehud Helft |
+972 (3) 6301058 |
GK Investor Relations |
+1 617 418 3096 |
|
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