– Order backlog at record level of almost EUR 9bn (+11.7%)
– Production output up 9.1% to over EUR 3bn
– Increase in order intake by 25
– EBT: increase to EUR 27.5 million (+24.6 %)
– Outlook 2023 confirmed
– Production output of EUR 6.5 bn to EUR 6.7 bn
– Further increase in earnings
With its broadly positioned construction portfolio, PORR was able to generate significant increases in output in the first half of 2023. Despite the challenging global market environment, it increased its earnings before tax (EBT) to EUR 27.5m and secured numerous new lucrative major projects. PORR confirms its outlook for the 2023 business year.
“We received a number of large, exciting orders in the first half of the year. Our order intake increased by an impressive 25% compared to the previous year,” says a pleased PORR CEO Karl-Heinz Strauss. “At the same time, we were also able to keep the increased costs in check and achieve a satisfactory result.” New orders include, for example, construction lot H53 of the Brenner Base Tunnel, the construction of a large hospital with 100,000 m² of floor space in Wrocław, Poland, as well as the SuedLink Elbquerung infrastructure project, which involves tunnelling under the River Elbe to transmit up to four gigawatts of wind power. In total, the order intake in the first half of the year amounted to EUR 3.8 billion.
The order backlog also increased (+11.7 % compared to the first half of 2022) and for the first time is close to the EUR 9 billion mark. PORR achieved a production output of EUR 3,017m – an increase of 9.1% compared to the same period last year. Growth was particularly strong in the area business in Poland and Romania: Here, production output rose by over 40 % in each case. The railway construction segment in Austria also showed pleasing growth. PORR’s focus is on its seven European home markets. It achieved 96.9% of its production output there. Austria remains the largest market with a share of 44.8%.
Solid financial performance
The global rise in prices also led to significant increases in both revenues and costs at PORR. In the first half of 2023, PORR generated revenue of EUR 2,891.1m, 11.4% more than in the same period of 2022. On the cost side, purchased services in particular recorded a significant increase.
Overall, however, the increase in expenses was lower than the increase in revenue. PORR was thus able to improve its result (EBITDA) by 8.7% to EUR 136.7m. Earnings before taxes (EBT) rose by 24.6% to EUR 27.5m, resulting in an EBT margin of 0.9% in relation to production output (HY/2022: 0.8%).
Stable capital structure
PORR’s total assets amounted to EUR 4,279.7m as of the reporting date 30 June 2023, 6.1% higher than on the previous year’s reporting date (30 June 2022: EUR 4,034.7m). At the same time, equity increased by 6.5% to EUR 790.0 million (30 June 2022: EUR 742.1 million). Despite the increase in total assets, the equity ratio remained almost unchanged at 18.5% (30 June 2022: 18.4%).
Net debt increased to EUR 224.4 million (31 December 2022: EUR -59.0 million) due to seasonal factors. Compared to 30 June 2022, it increased by 13.1% (30 June 2022: EUR 198.4m), mainly due to the increase in lease liabilities as a result of index adjustments. Cash and cash equivalents remained largely constant at EUR 451.5 million (30 June 2022: EUR 461.9 million), while the liquidity reserve expanded slightly year-on-year to around EUR 800 million.
Outlook 2023 confirmed
The global economy is at the beginning of a recovery phase, but inflation remains high, both in terms of costs and revenue. Nevertheless, further growth in the construction industry is expected in most of PORR’s home markets. The recovery of international supply chains and the easing of energy cost increases are having a positive effect. Growth drivers for the industry in the second half of the year will continue to be the infrastructure and civil engineering sectors. In building construction, industrial construction is ensuring stable development.
With full order books and the current development of production output, PORR is ideally equipped for the second half of 2023. Based on this, the Executive Board expects an output volume in the range of EUR 6.5bn to EUR 6.7bn for the 2023 business year, as well as a further increase in earnings.
The assessment of the further course of business is based on the current targets in the individual areas as well as the opportunities and risks arising in the respective markets. The geopolitical situation has stabilised recently. Should the situation in connection with the Ukraine conflict or energy supply worsen again, this could have a negative impact on PORR and its business activities. Any assessment of economic development is therefore subject to forecasting risks.
Source: PORR
