Record-high results of the TORPOL Group
According to preliminary financial results, the TORPOL Group, one of the leading entities in the market for construction and modernization of railroad infrastructure in Poland, achieved historically high profits in 2020. Consolidated gross profit on sales amounted to almost PLN 100 million (+33 percent year-on-year), and net profit amounted to PLN 48.6 million (+64 percent year-on-year).
Net revenues from sales amounted to almost PLN 1.4 billion (-13% y/y). The Group’s backlog of orders at the end of 2020 amounted to over PLN 1.6 billion net and its average gross profitability on sales for the last 12 months is almost 7.2%. The Group is in a very good financial and liquidity position, which is reflected in the record cash standing (about PLN 405 million at the end of last year).
We are very pleased with the results achieved thanks to the long-term, consistent and committed work of all employees last year, in which the scale of difficulties and challenges we faced was unprecedented. In such circumstances, TORPOL completed and settled most of the difficult contracts acquired in 2016 and 2017 with higher profitability than originally planned. Moreover, the results achieved were increasingly influenced by the growing share of contracts characterized by a higher than average gross margin on sales. It should be particularly emphasized that these very good financial results at every level of the income statement are supported by the generated high positive cash flows from operating activities, with a record level of cash in bank accounts – over PLN 400 million.
Until now, the Torpol Group has not been significantly affected by any difficulties related to the pandemic. This is not only due to our quick reaction to current events in the country and the implementation of appropriate internal regulations in our offices and on the Group’s construction sites, but above all due to the professional attitude of our employees, who behave responsibly and abide by the safety rules. Moreover, together with the ordering party, contract engineers, subcontractors and suppliers, Torpol very soon developed new principles of cooperation which allowed for maintaining operational continuity on all contracts, high quality of construction works, as well as continuity and timeliness of deliveries of most materials despite the still difficult situation on the market related to the coronavirus pandemic.
If there is nothing unexpected, the year 2021 should be comparable to the year 2020 for Torpol Group, as it results directly from the execution of the existing portfolio of orders. At the moment, we are focusing on smooth and timely execution of construction works while maintaining all safety measures in sanitary regime conditions and maintaining satisfactory profitability of conducted contracts, at the same time actively participating in tenders announced on the market of modernization and revitalization of railroad infrastructure, stations, but also in the streetcar sector and civil engineering facilities. Today, we are very well prepared to carry out major, difficult, multi-discipline new projects and we are waiting for them to be released by the contracting authorities at the end of Q2-Q3 this year. This is needed not only for Torpol, but also for the whole market of contractors and suppliers. We have a committed, young, but already experienced and very well prepared engineering and technical staff, and also effective and competent organisational, financial and legal support areas, one of the best equipped with highly specialised machinery, very stable financial standing and reliable subcontractors and suppliers co-operating for many years, which guarantees efficient, good quality and timely execution of works – says Grzegorz Grabowski, the President of TORPOL S.A.
The activities of Torpol Oil&Gas are also being consistently developed. TOG possesses unique competences within the scope of design and execution of technological and highly innovative systems and equipment within the field of oil and gas refining and extraction, as well as the chemical industry. The company has a record-high portfolio of orders and, for the third year in a row, it has generated the highest revenues and financial result – points out Grzegorz Grabowski, the President of TORPOL S.A.
According to the preliminary financial results, TORPOL S.A. has achieved net revenues on sales of nearly PLN 1.3 billion (-16% y/y). The generated gross profit on sales amounted to PLN 93.3 million (+33% y/y), and net profit of PLN 47 million. The company plans to publish its annual report on the date of 12 March this year.