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
Units Under
Company
Management
Including
Partner Share

Consolidated
Companies

Companies
Under Joint
Control


Israel




Sales (NIS millions)

766

650

-

Number of apartment sale contracts signed

426

365

-

Average price of apartments sold (NIS thousands)

1,799

1,781

-


Europe




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

Companies
Under Joint
Control


Israel



Revenues from apartments delivered (NIS millions)

1,242

-

Number of units delivered

762

-

Average price of apartments delivered (NIS thousands)

1,630

-


Europe



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

inbal_u@shikunbinui.com

+1 617 418 3096


shikunbinui@gkir.com

 

 

SOURCE Shikun & Binui Ltd.



Journalists and Bloggers

Visit PR Newswire for Journalists for releases, photos and customised feeds just for media.

View and download archived video content distributed by MultiVu on The Digital Center.

 

Get content for your website

Enhance your website's or blog's content with PR Newswire's customised real-time news feeds.
Start today.

 

 
 

Contact PR Newswire

Send us an email at info@prnewswire.co.il or call us at +972-77-2005042

 

 
 

Become a PR Newswire client

Send us an email at info@prnewswire.co.il or call us at +972-77-2005042

 

 
  1. Products & Services
  2. News Releases
  3. Contact Us