- Production output up by 9.5%
- Order backlog of EUR 8.2 bn surpasses previous high
- EBT increases again
- Confident outlook for 2023
Vienna, 24.05.2023 – PORR achieved a significant increase in output in the first three months of 2023 along with a new record in the order backlog. Numerous new projects, including in industrial construction as well as the permanent business, ensure a well-filled pipeline.
“PORR was able to build on its strong performance in the previous year and delivered excellent figures in the first quarter of 2023. The year 2023 promises to be a successful one”, says Karl-Heinz Strauss, CEO of PORR. “With production output up by 9.5%, we were able to make significant gains and our EBT of EUR 4.5m is also impressive”.
The international construction company increased its production output to EUR 1.3 bn in the first three months of the year. This growth is due on the one hand to the expansion of output in Polish building construction – partly thanks to the favourable weather conditions. However, the segments AT / CH and CEE, which includes Romania, the Czech Republic and Slovakia, also achieved significant growth. 42.3% of the production output was achieved in the most important home market, Austria.
Leader in infrastructure sector
With an order backlog of EUR 8.2 bn (+2.2% compared to the previous year), PORR has once again exceeded its previous record. The order intake fell temporarily by 10.6% but does not yet include the contract won in April for the large-scale construction project lot H53 Pfons-Brenner.
“PORR is a leader in the infrastructure sector and is only moderately affected by the current tense situation in private residential construction”, says Strauss. Residential construction projects only account for 10.0% of the order backlog. This contrasts with civil engineering, which accounts for more than half of all projects.
In the first three months of 2023, several significant new contracts were added in industrial construction. These include the expansion of clean room capacities for ams – Osram in Premstätten and the construction of new logistics facilities near Graz – both in Austria. Other important projects came from the tunnelling sector. In addition to the renovation of the Cramberger and Fachinger tunnels near Frankfurt, these include the complete overhaul of the Arlberg tunnel in Austria. In building construction, the largest order came from Prague with the expansion of a simulation centre at Motol University Hospital.
Earnings growth continues
Parallel to growth in production output, there were substantial increases in revenue: In the first quarter of 2023, PORR generated revenue of EUR 1,266.3m, 14.0% more than in the same period of 2022. The cost of materials and other related production services also rose, by a total of 18.0%. On the other hand, staff costs only increased by a much smaller 1.5%. This led EBITDA to grow by 7.3% to EUR 54.0m.
The essentially unchanged high depreciation, amortisation and impairment and the almost constant financial result lead to EBT of EUR 4.5m (1-3/2022: EUR 0.6m). The profit for the period increased significantly as well to EUR 2.6m (1-3/2022: EUR 0.4m).
Strong balance sheet structure
PORR’s balance sheet was also strong in the first quarter. Total assets stood at EUR 4,139m. Equity fell slightly to EUR 795m compared to year-end 2022, bringing the equity ratio to 19.2% (31 December 2022: 19.3%). Net debt increased again compared to the end of the previous year due to seasonal factors (31 March 2023: EUR 100m). However, it was down by more than a quarter against 31 March 2022.
Cash and cash equivalents stood at EUR 578m as of 31 March 2023. Together with the committed cash lines PORR has a liquidity reserve of around EUR 900m and remains well equipped with a comfortable liquidity cushion.
Confident outlook for 2023
The cost of construction materials and raw materials has stabilised at a high level and the energy markets are easing on the back of a mild winter. Based on the high order backlog and the current frameworks, the Executive Board expects output for the 2023 financial year to at least match the previous year’s level as well as a further increase in earnings. The assessment of how the business will perform is based on the current goals in the individual segments as well as the opportunities and risks arising in the respective markets. The geopolitical situation may have stabilised recently but should the situation with the Ukraine conflict or with energy supply intensify, this could have a negative impact on PORR and its business activities. Any assessment of economic development is therefore subject to forecasting risks.
Facts and figures at a glance
|Key performance indicators (EUR m)||1-3/2023||% ∆||1-3/2022|
|Production output1||1.271||9,5 %||1.161|
|Average staffing levels||19.383||-0,9||19.559|
|Order backlog||8.211||2,2 %||8.033|
|Order intake||1.278||10,6 %||1.429|
|EBT||4,5||> 100,0 %||0,6|
|Profit for the period||2,6||> 100,0 %||0,4|
Financial position indicators (EUR m)
|Total assets||4.139||5,7 %||3.914|
|Equity ratio||19,2 %||0,1 PP||19,1 %|
|Net debt||100||-25,7 %||135|
1 Production output corresponds to the output of all companies and consortiums (fully consolidated, equity method, proportional or those of minor significance) based on the interest held by PORR AG.
The figures have been rounded off using the compensated summation method. Absolute changes are calculated using the rounded values, relative changes (in percent) are derived from the non-rounded values.
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