- Production output rises to EUR 3,524m
- EBT up by 22.7% to EUR 81.1m
- Increase in net cash position to EUR 186.5m
- Plans for dividend increase to EUR 1 plus special one-off dividend of EUR 0.50 as scrip dividend
- Organisational structure adjusted to dynamic environment
- Positive outlook for business year 2016
Vienna, 21 April 2016 – Against a difficult economic backdrop and increasing competition, PORR managed to expand its output in 2015 and once again achieved a record order backlog. Production output of EUR 3,524m was 1.4% higher than the previous year – with the home markets of Austria, Germany, Switzerland, Poland and the Czech Republic accounting for more than 86%. Austria thereby remained the most important market by some margin again in 2015, with PORR generating more than half of total production output here. This increase was primarily achieved through the balanced mix of permanent business and large-scale Projects.
“Our intelligent growth strategy has paid off yet again in 2015. In addition to the excellent market posi-tion in Austria, we have also been able to consolidate our position in Germany – PORR’s second most important market. In recent quarters PORR has established itself as a reliable partner to German industry”, said Karl-Heinz Strauss, CEO of PORR AG.
Cushion of orders expands – exceptional order situation on the home and project markets
The order backlog reached EUR 4,579m at year-end 2015, representing an increase of 12.8%. Even sharper growth was seen in order bookings, which climbed by 29.0% from the already high level of the previous year to reach EUR 4,045m. This is particularly pleasing as there were no one-off effects impacting on 2015.
The most important new orders included the Europaallee project at Zurich Central Station, Bavaria Towers in Munich, and the production site and main administrative building for Haribo in Germany. In Vienna, Monte Laa lots 3 and 5 will be realised in the coming months. In infrastructure construction PORR acquired the Swiss tunnel project Albula II in summer as well as works on the Ceneri Base Tunnel. The most important new projects in Poland were the Prokocim hospital in Krakow and the Hotel Marriott Okecie in Warsaw. In terms of volumes, PORR’s largest new tender was in Qatar. While works on the Green Line of the Doha metro are progressing as planned, PORR was additionally named as the system supplier for the installation of the Slab Track system for Doha’s entire underground rail network. The tender includes the production, delivery and installation of track base plates for all of the metro lines.
Significant growth in earnings
The solid growth in output and improvement in the cost situation was also reflected in earnings. In the year under review EBITDA rose by 6.1% to EUR 165.9m, while EBIT of EUR 87.8m was also up by 7.4% on the previous year. Earnings before taxes (EBT) of EUR 81.8m represented a rise of as much as 22.7% compared to 2014. The proportionate decrease in tax expense compared to the previous year resulted in a 25.7% increase in Group profits to EUR 61.0m.
Total assets of EUR 2,304.0m were 7.4% higher than the previous year. This increase is due to the first-time inclusion of the Polish infrastructure unit acquired from the Bilfinger Group and the increase in cash and cash equivalents. The existing net cash position stood at EUR 186.5m, marking another significant increase on the level of 2014. Despite the growth in assets, the equity ratio held steady at 17.9%.
Special one-off dividend planned
The Executive Board of PORR AG will propose a dividend increase for the year 2015 from EUR 0.75 to EUR 1.00 for each share entitled to dividends to the Annual General Meeting on 24 May 2016. In light of the successful spin-off of the real estate business, PORR is additionally planning the payout of a special one-off dividend of EUR 0.50 per dividend-bearing share, with the option to take the dividend in the form of PORR shares or in cash (scrip dividend).
Change in the corporate structure
PORR is doing justice to the dynamic growth on its home and project markets. In order to realise growth opportunities even more effectively and efficiently, the Group implemented a new corporate structure with a clear delineation of responsibilities in March of this year. The company is now even better equipped for its two business models: on the one hand, for the complete market coverage across every sector in Austria, Switzerland and the Czech Republic; on the other for the specific project business on every other market. The second most important market, Germany, has been upgraded and assigned its own dedicated business unit.
The project outlook for the year 2016 is consistently positive. PORR will continue to participate in growth on its home and project markets. Furthermore, the construction group sees attractive prospects in tapping into additional markets in the infrastructure sector – especially in Scandinavia and Great Britain. Taking into account the fluctuation range typical to the industry, the Executive Board thereby assumes further growth in output and earnings for the current business year 2016.
Details on the business performance in Germany
Germany is PORR’s most important foreign market. Here the company offers its entire construction portfolio and is constantly expanding its activities. In 2015, the year under review, production output reached EUR 634m, thereby rising by 7% (2014: EUR 593m). Order bookings rose by 22.7% to EUR 692m. The order backlog stood at EUR 1,294m, which was 4.7% above the value of the previous year (EUR 1,235m). Current infrastructure highlights include major projects such as Stuttgart 21, the Emscher Sewer and the construction of more than 300km of Slab Track system for VDE 8 (German Unity Transport Project 8), Germany’s largest rail project at present. PORR is also making its mark in building construction: in this sector it acquired tenders with a volume of almost EUR 400m in 2015. Industrial construction will be an additional focal point in the coming years. In the medium term PORR Deutschland intends to achieve a market share of at least EUR 1bn in its core construction business.
Sandra C. Bauer
Head of Corporate Communications | Corporate Spokesperson
T. +43 50 626-3338
M. +43 664 626-3338