Half-year results 2014: Porr reports sharp rise in profit

• EBT up from EUR 0.07m (06/2013) to EUR 2.9m
• Production output rises by 23% to EUR 1,590m
• Order backlog of EUR 4,708m maintained at the high level of previous year
• PORR appeals to investors: capital increase 22 times covered
• The new course: from construction and real estate group to two focused pure-play companies

Vienna, 1 Spetember 2014 - PORR right on track
In the first half of 2014 PORR managed to continue the positive growth of the preceding quarters. By consistently pursuing its strategy – concentrating on the five home markets Austria, Germany, Switzerland, Poland and the Czech Republic, as well as on the core competency construction – it was possible to increase production output by 23% over the comparable period last year to EUR 1,590m in the first six months 2014. The early start to the construction season allowed by favourable weather conditions also contributed to this growth. Every operating unit managed to increase output, whereby developments were particularly positive on infrastructure projects such as the Green Line of the Doha Metro, Koralm Tunnel KAT 3, slab track projects in Germany and on the Vienna housing market. The company’s five home markets once again generated more than 93% of total output.
 
This growth was also reflected in earnings. With an EBT of EUR 2.9m, PORR managed to achieve the best half year results of recent years. In addition, there was a sharp fall in net debt which at EUR 402.6m was EUR 261.1m below the comparable period of last year.
 
Exceptionally positive situation with orders continues
At the end of June 2014 the order backlog reached EUR 4,708m, similar to the record level of the previous year. Order bookings fell by 37% to EUR 1,707m, as a result of the large-scale orders for the Doha Metro and Koralm Tunnel which were acquired in the comparable period of the previous year. Without these projects, order bookings in the first half of this year are significantly higher than the comparable period. The most important new orders included the “Smart Campus” office complex in Vienna, the LKf272 Kluczbok–Ostrzeszów railway construction project in Poland and the Obervermunt II power plant project in Vorarlberg. PORR secured its future position in Viennese housing construction with the “Messecarree” student halls of residence and the “Wohnpark Ottakring” residential complex. Austria continues to provide a stable foundation for the Group across every business area. In Germany the company succeeded in acquiring numerous projects both in building construction and infrastructure.
 
Financial markets back PORR strategy
As part of the capital increase in April/May 2014, PORR managed to completely place the new share issue. By the end of the subscription and offer period on April 28th 2014 investors had subscribed to a total of 2,645,000 new shares in two tranches. The preplacement of 2,164,138 shares on April 9th and 10th 2014 was four times covered, with an offer and subscription price of EUR 45.00 per share. After exercising subscription rights, the second tranche of 480,862 new shares was 22 times covered. Gross proceeds from the capital increase totalled around EUR 119m.
 
Real estate sector: on course to become a European-style player
With the takeover of a majority stake in UBM, PORR will completely reorganise its real estate business. The first step will involve a spin-off of the non-core real estate business of Strauss & Partner and other shareholdings as well as the majority stake in UBM into the new PIAG. The goal of these measures is twofold – to allow the PORR Group to have an even stronger focus on its core business of construction and to establish an independent, listed company entirely focussed on the real estate and development sector.
 
Positive outlook for full year
In light of the high order backlog, the new real estate strategy and the strong position on the most important markets, the Executive Board expects 2014 to mark a renewed increase in output and earnings. Naturally, this is conditional on any negative effects from the current geopolitical backdrop.
 
“We are consistently pursuing the course laid out for PORR”, said Karl-Heinz Strauss, PORR CEO. “Buoyed by the current market situation, we will take a targeted approach to continuing and realising our focal points in cost management, process optimisation and the shift towards digital technology in construction”.