Publication of financial results for FY2018

Last year, Torpol reached its record high scale of operations. Consolidated revenues exceeded PLN 1.5 billion, while EBITDA  PLN 69 million, and net profit, upon taking into account the situation of the Norwegian company, amounted to PLN 19.2 million. The main impact on the results in 2018 was primarily achieved due to the intensive pace of work and enormous effort and commitment of all employees of the TORPOL group, both those directly implementing the works, as well as those involved in the areas of logistics, organizational, legal and financial support of contract implementation.

– Due to the involvement of employees and the use of own highly specialized hardware resources, it was possible to maintain proper coordination of works, parameters and cost regimes, which translated into the obtained financial results. In the fourth quarter of 2018, we turned over PLN 550 million, which is the highest quarterly result in the company’s history –  commented Grzegorz Grabowski, president of TORPOL S.A.

The company is currently implementing 14 contracts differing not only in size, but also in their margins. Despite the very high pressure on margins resulting both from the increase in prices of materials and their transport as well as increasingly difficult and more expensive access to subcontracting resources, the Company and the TORPOL Group achieved over 5% gross sales margin and a positive net financial result for 2018. It was possible thanks to securing for the entire portfolio with the level of prices for basic materials and the use of solutions that increase efficiency and reduce costs. At the same time, it should be clearly stated that it is imperative to introduce systemic solutions introducing valorization of currently executed contracts concluded at the turn of 2016/2017 as soon as possible and to introduce a real indexation factor to the newly announced proceedings. These solutions would enable a more efficient and effective implementation of works and ensure the achievement of projected margins exceeding 5%, giving the opportunity for technological development.

As of today, the Company has orders for approx. 90% of the contracted basic materials, most of which were delivered to construction sites. For all proceedings in which offers are currently submitted, it has confirmed deliveries at a specified price for basic materials in the event of their settlement. If the construction works are not accumulated as a result of shifting decisions or logistic problems, there should be no disruptions related to the availability of materials.

The company actively participates in tender proceedings in order to build the portfolio for subsequent years. At present, after the auctions, the total value of the offers that have reached the highest number of points is over PLN 2 billion net.

– I hope that a series of cancellations made by the contracting authority, and related to too high offers compared to the investor’s cost estimate, has already ended and the adjudication will be announced in the near future – said Grabowski. – A further lack of solutions may lead to a reduction of market liquidity and the accumulation of both work, as well as material supplies at a later stage – he added.