Shikun & Binui Ends 2018 With a Marked Improvement in Profitability Metrics

Shikun & Binui Ends 2018 With a Marked Improvement in Profitability Metrics

PR Newswire

AIRPORT CITY, Israel, March 27, 2019

Increase of 87% in net profit to NIS 559 million

Improvement in gross profit to NIS 960 million (15.2% of revenues)

Increase of 58% in operating profit to NIS 903 million (14.3% of revenues)

AIRPORT CITY, Israel, March 27, 2019 /PRNewswire/ -- Shikun & Binui Ltd. (TASE: SKBN.TA), a global construction and infrastructure company headquartered in Israel, today reported its financial results for the fourth quarter and full year, ended December 31, 2018.

FINANCIAL HIGHLIGHTS OF 2018

1. CONSTRUCTION

Solel Boneh: continued significant execution and expansion of contractor offerings

International Building and Infrastructure Contracting Activities (excluding the US): the receipt of new projects led to an improvement in revenues in the fourth quarter

US Building and Infrastructure Contracting Activities: Progress in project execution led to an increase in revenues

Development of the Backlog* (in NIS millions)

*The backlog as of December 31, 2018 does not include additional construction projects which total NIS 1.3 billion that the Company won, up to or after the reporting date. These include an USD 120 million in Roads Project in Ethiopia, two segments of the Southern Michshal Project amounting to NIS 300 million, the Spiral Tower in the amount of NIS 163 million, Halumot Ohr Project amounting to NIS 160 million, Project BIG in Yehud amounting to NIS 133 million, etc., excluding the execution of those projects carried out during the period. The decline in the backlog as compared with its level at December 31, 2017, was due partially from the effect of the early adoption of the IFRS 15 reporting standard.

2. RESIDENTIAL REAL ESTATE DEVELOPMENT

Apartment Sales

Additional data regarding the Company's sale of apartments (signed contracts) during 2018:


Apartment Units Under
Company Management
Including Partner Share

Consolidated
Companies

Companies
Under Joint
Control

Israel




Sales

(NIS millions)

674

562

-

Number of apartment sale contracts signed

386

321

-

Average price of apartments sold

(NIS thousands)

1,745

1,751

-

Europe




Sales

(NIS millions)

616

414

57

Number of apartment sale contracts signed

939

692

60

Average price of apartments sold

(NIS thousands)

656

599

949

Data regarding delivery of apartments to customers during 2018:


Consolidated
Projects

Projects Under
Joint Control

Europe



Revenues from apartments delivered (NIS millions)

329

29

Number of units delivered

688

39

Average price of apartments delivered (NIS thousands)

477

723

3. PROJECTS & IGAs (INCOME GENERATING ASSETS)

The Company continues to implement the strategy of increasing value and freeing up cash flow for new projects:

The Company announced the win of a number of new significant projects:

Energy: at the stage of completion of construction and preparation for operations of about 600 MW in 2019. There is a plan in Israel to reduce the volume of electricity generated from coal from 50% to a few percent in 2030 are expected to lead to the publication of tenders of about 15 GW by 2030 (through privatization of gas power plants, construction of gas, solar and wind power plants).

INVESTORS CONFERENCE CALL

Shikun & Binui will host a conference call on March 27, 2019 starting at 11am Eastern Time to discuss the financial results. Management will also be available to answer investor's questions, after presenting the results.

To participate, please call one of the following teleconferencing numbers:

US:                              1-888-281-1167

UK:                              0-800-917-9141

Israel:                           03-918-0650

International:               +972-3-918-0650

At: 11am Eastern Time, 8am Pacific Time, 3pm UK Time, 5pm Israel Time

For those unable to participate, the teleconference will be available for replay on the company's website at http://en.shikunbinui.co.il/ beginning 24 hours after the call.

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.

SAFE HARBOR STATEMENT

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.

 

 Consolidated Financial Statements                                                                                                                                           

Consolidated Statements of Financial Position as at






December 31


December 31



2018


2017



NIS thousands


NIS thousands






Assets





Cash and cash equivalents


2,491,867


2,029,574

Bank deposits


781,879


657,668

Short-term loans and investments


129,150


63,050

Short-term loans to investee companies


25,001


31,854

Trade receivables – accrued income


2,830,251


2,326,935

Inventory of buildings held for sale


1,587,147


1,395,986

Receivables and debit balances


497,394


498,838

Other investments, including derivatives


376,642


241,641

Current tax assets


39,287


19,692

Inventory


160,518


176,145

Assets classified as held for sale


716,062


105,352

Total current assets


9,635,198


7,546,735






Receivables and contract assets





 in respect of concession arrangements


1,065,753


923,267

Non-current inventory of land (freehold)


938,127


789,699

Non-current inventory of land (leasehold)


705,172


426,609

Investment property, net


862,282


842,943

Land rights


13,422


13,179

Receivables, loans and deposits


211,766


522,795

Investments in equity-accounted investees


403,773


598,512

Loans to investee companies


1,099,937


612,054

Deferred tax assets


299,144


162,932

Property, plant and equipment, net


1,076,317


875,593

Intangible assets, net


364,911


150,238

Total non-current assets


7,040,604


5,917,821






Total assets


16,675,802


13,464,556

 

 

Consolidated Financial Statements

Consolidated Statements of Financial Position as at




December 31


December 31



2018


2017



NIS thousands


NIS thousands






Liabilities





Short-term credit from banks and others


1,529,542


1,036,026

Subcontractors and trade payables


1,657,591


1,460,075

Short-term employee benefits


160,792


136,860

Payables and credit balances including derivatives


638,652


616,135

Current tax liabilities


84,623


105,653

Provisions


172,364


246,019

Payables - customer work orders


1,483,675


1,376,856

Advances received from customers


323,684


208,685

Liabilities classified as held for sale


360,954


-

Total current liabilities


6,411,877


5,186,309






Liabilities to banks and others


3,200,074


2,477,801

Debentures


3,680,283


3,402,211

Employee benefits


46,130


49,843

Deferred tax liabilities


119,665


105,719

Provisions


260,418


102,795

Excess of accumulated losses over cost of investment





 and deferred credit balance in investee companies


97,408


48,130

Total non-current liabilities


7,403,978


6,186,499






Total liabilities


13,815,855


11,372,808






Equity





Total equity attributable to owners





 of the Company


2,531,765


1,849,025

Non-controlling interests


328,182


242,723

Total equity


2,859,947


2,091,748
















Total liabilities and equity


16,675,802


13,464,556

 

 

Consolidated Statement of Income



December 31


December 31


December 31


2018


2017


2016


NIS thousands


NIS thousands


NIS thousands







Revenues from work






 performed and sales

6,331,518


6,437,307


5,378,963

Cost of work performed






 and sales

(5,371,928)


(5,586,065)


(4,541,744)







Gross profit

959,590


851,242


837,219







Gain (loss) on sale of






 investment property

125,949


3,217


70,543

Selling and marketing expenses

(40,089)


(40,049)


(32,318)

Administrative and general expenses

(415,472)


(380,824)


(366,479)

Share of profits of equity accounted






 investees (net of tax)

19,141


59,816


81,172

Other operating income

389,504


219,622


451,797

Other operating expenses

(135,578)


(130,028)


(41,762)







Operating profit

903,045


582,996


1,000,172







Financing income

261,136


199,436


182,715

Financing expenses

(530,652)


(422,471)


(566,483)







Net financing expenses

(269,516)


(223,035)


(383,768)







Profit before taxes






 on income

633,529


359,961


616,404

Taxes on income

(74,233)


(61,655)


(136,455)







Profit for the period

559,296


298,306


479,949







Attributable to:






Owners of the Company

494,995


230,927


445,771

Non-controlling interests

64,301


67,379


34,178








559,296


298,306


479,949

Basic earnings per






 share (in NIS)

1.24


0.58


1.12







Diluted earnings per






 share (in NIS)

1.22


0.57


1.12

 

 

Consolidated Financial Statements  

Operating Segments



Year ended December 31, 2018


Infrastructures
and
construction
(international)
(excluding
USA)


Infrastructures
and
construction
(Israel)


Infrastructures
and
construction
(USA)


Real estate
development 
(Israel) 


Real estate
development 
(international) 


Concessions


Energy


Other


Adjustments


Consolidated




NIS thousands


External revenues

1,355,063


2,850,687


485,278


987,301


499,354


55,910


503,563


45,184


(450,822)


6,331,518

Inter-segment revenues

-


433,445


-


76


-


-


-


-


(433,521)


-

Total revenues from work performed and sales

1,355,063


3,284,132


485,278


987,377


499,354


55,910


503,563


45,184


(884,343)


6,331,518

Segment costs

1,326,005


3,190,853


470,342


630,585


409,067


(299,584)


471,490


68,221


(988,097)


5,278,882

Segment results




















Net operating expenses for all segments

29,058


93,279


14,936


356,792


90,287


355,494


32,073


(23,037)


103,754


1,052,636




















(149,591)

Operating profit



















903,045

Net financing income (expenses) allocated




















 to segments

(70,437)


(6,114)


316


(41,659)


(1,856)


24,839


7,988


(7,674)


21,408


(73,189)

Net financing expenses not allocated to




















segments



















(196,327)

Segment profit (loss) before income tax

(41,379)


87,165


15,252


315,133


88,431


380,333


40,061


(30,711)


(220,756)


633,529

Additional information:




















Segment assets

4,180,720


2,956,046


124,160


4,096,704


1,559,434


620,612


1,083,260


496,265


(811,183)


14,306,018

Investment and loans to associates

9


28,267


-


74,013


182,906


800,141


430,284


1,759


11,332


1,528,711

Assets not allocated to segments



















841,073

Total consolidated assets



















16,675,802

Segment liabilities

1,506,032


2,429,300


26,738


2,644,396


1,327,415


792,653


1,330,134


307,380


(1,353,497)


9,010,551

Excess of losses over investment in investees

22,428


-


48,001


10,900


-


-


16,079


-


-


97,408

Liabilities not allocated to segments



















4,707,896

Total consolidated liabilities



















13,815,855

Long-term investments in assets

107,215


62,552


-


52,774


4


103,784


171,157


12,366


-


509,852

General investments in assets for the long-term



















12,735

Total investments in assets for the




















 long-term – consolidated



















522,587

Depreciation and amortization

121,029


50,697


1,568


20,192


1,097


3,221


16,285


12,447


(2,031)


224,505

General depreciation



















12,474

Total depreciation - consolidated



















236,979

 

Consolidated Financial Statements  

 

Operating Segments



Year ended December 31, 2017


Infrastructures
and
construction
(international)
(excluding
USA)


Infrastructures
and
construction
(Israel)


Infrastructures
and 
construction 
(USA) 


Real estate
development 
(Israel) 


Real estate
development 
(international) 


Concessions


Energy


Other


Adjustments


Consolidated




NIS thousands





















External revenues

1,508,804


3,229,094


345,405


1,382,599


247,775


145,359


36,689


37,939


(496,357)


6,437,307

Inter-segment revenues

-


291,770


-


76


-


-


-


-


(291,846)


-

Total revenues from work performed and sales

1,508,804


3,520,864


345,405


1,382,675


247,775


145,359


36,689


37,939


(788,203)


6,437,307

Segment costs

1,418,035


3,397,633


300,022


1,080,708


171,682


66,398


37,789


138,995


(930,985)


5,680,277

Segment results




















Net operating expenses for all segments

90,769


123,231


45,383


301,967


76,093


78,961


(1,100)


(101,056)


142,782


757,030

Operating profit



















(174,034)

Net financing income (expenses) allocated



















582,996

 to segments

(5,658)


(8,628)


(450)


(27,275)


(28,382)


41,470


8,077


(8,409)


(35,176)


(64,431)

Net financing expenses not allocated to




















segments



















(158,604)

Segment profit (loss) before income tax

85,111


114,603


44,933


274,692


47,711


120,431


6,977


(109,465)


(225,032)


359,961

Additional information:




















Segment assets

3,885,086


2,586,918


34,722


3,678,622


1,164,247


527,631


521,311


202,121


(764,322)


11,836,336

Investment and loans to associates

9


22,364


-


115,367


249,980


700,895


4,043


281,857


-


1,374,515

Assets not allocated to segments



















253,705

Total consolidated assets



















13,464,556

Segment liabilities

1,258,243


2,128,444


12,526


2,492,016


1,077,656


694,223


397,521


270,530


(1,083,551)


7,247,608

Excess of losses over investment in investees

18,122


-


10,169


10,231


-


-


4,968


-


-


43,490

Liabilities not allocated to segments



















4,081,710

Total consolidated liabilities



















11,372,808

Long-term investments in assets

32,247


48,510


-


68,696


1,950


607


6,263


23,133


-


181,406

General investments in assets for the long-term



















10,451

Total investments in assets for the




















 long-term – consolidated



















191,857

Depreciation and amortization

134,144


49,897


1,264


18,881


5,118


-


15,037


95,622


(438)


319,525

General depreciation



















11,788

Total depreciation - consolidated



















331,313

 

 

Consolidated Financial Statements  

 

Operating Segments


Year ended December 31, 2016


Infrastructures
and
construction
(international)
(excluding
USA)


Infrastructures
and
construction
(Israel)


Infrastructures
and
construction
(USA)


Real estate
development
(Israel) 


Real estate
development 
(international)


Concessions


Energy


Other


Adjustments


Consolidated




NIS thousands

External revenues

1,336,215


2,324,394


153,497


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 from work performed and sales

1,478,789


2,768,653


153,497


1,278,886


146,254


427,383


44,679


40,259


(959,437)


5,378,963

Segment costs

1,163,973


2,685,902


148,904


978,106


126,888


91,155


4,492


80,205


(1,074,171)


4,205,454

Segment results

314,816


82,751


4,593


300,780


19,366


336,228


40,187


(39,946)


114,734


1,173,509

Net operating expenses for all segments



















(173,337)

Operating profit



















1,000,172

Net financing income (expenses) allocated

(162,075)


(144)


(4)


(3,628)


(21,498)


18,965


(17,995)


(6,766)


(26,019)


(219,164)

 to segments




















Net financing expenses not allocated to




















segments



















(164,604)

Segment profit (loss) before income tax

152,741


82,607


4,589


297,152


(2,132)


355,193


22,192


(46,712)


(249,226)


616,404

Additional information:




















Segment assets

4,329,653


2,829,745


9,862


4,842,449


877,053


1,057,995


313,365


301,671


(727,944)


13,833,849

Investment and loans to associates

9


49,257


23,820


112,294


153,323


599,010


8,775


307,741


-


1,254,229

Assets not allocated to segments



















89,972

Total consolidated assets



















15,178,050

Segment liabilities

1,441,179


2,316,586


58


3,887,424


769,551


1,115,350


196,740


384,871


(1,041,509)


9,070,250

Excess of losses over investment in investees

17,572


-


-


9,689


-


2,059


1,120


-


-


30,440

Liabilities not allocated to segments



















4,006,219

Total consolidated liabilities



















13,106,909

Long-term investments in assets

39,389


48,488


-


50,279


1,298


82,132


3,302


69,043


-


293,931

General investments in assets for the long-term



















9,644

Total investments in assets for the




















 long-term – consolidated



















303,575

Depreciation and amortization

160,642


42,233


205


18,877


5,060


-


10,661


24,924


(472)


262,130

General depreciation



















10,467

Total depreciation - consolidated



















272,597

 

 

CONTACTS

Shikun & Binui
Inbal Uliansky
+972(3)630-1058
inbal_u@shikunbinui.com

External Investor Relations
Ehud Helft
GK Investor Relations
+1-617-418-3096
shikunbinuni@gkir.com

Voltar noticias em Inglês