Shikun & Binui Reports Results for Second Quarter of 2013
AIRPORT CITY, Israel, Aug. 25, 2013 /PRNewswire/ --
- Projects backlog in infrastructure and construction segment totaled NIS 11.5 billion
- Revenues in the quarter grew by 8.3% compared with Q2 of 2012, totaling NIS 1.75 billion
- Growth of 44% in revenues of Shikun & Binui Real Estate this quarter, compared with Q2 of 2012, reaching NIS 518 million
- Group's bonds rating was upgraded to A1 with a stable outlook (Midroog)
Ofer Kotler, CEO of Shikun & Binui: "In recent months, we have posted impressive growth in projects backlog in the infrastructure and construction segment, we closed on the sale of our holdings in Highway 6, of which we were one of the builders, and we achieved a significant milestone in the energy operations."
Shikun & Binui Ltd. (TASE: SKBN.TA) ("Shikun & Binui" or the "Company"), a member of the Arison Group and Israel's leading infrastructure and real estate company, announced today its results for the second quarter ended June 30th, 2013.
Noteworthy events during and subsequent to the Second Quarter and Key Results:
- The Group's projects backlog in the infrastructure and construction segments totaled NIS 11.5 billion at the end of the quarter, of which NIS 8.9 billion ($2.5 billion) originated in the Group's activities outside of Israel. At the end of 2012, the projects backlog totaled NIS 9.7 billion, of which NIS 7.1 billion ($1.9 billion) originated in the Group's activities outside of Israel.
- Shikun & Binui Real Estate sold 208 apartments during the second quarter of 2013, for a total of NIS 272 million. In the first half of 2013, 403 units were sold for a total of NIS 538 million.
- In June, the Group posted several achievements:
- The Group closed on the sale of its holdings in "Derech Eretz" (Highway 6) for NIS 683 million, and will recognize a gain of NIS 63 million in the third quarter of 2013. Solel Boneh Infrastructures will carry out future projects related to Highway 6 totaling NIS 470 million.
- Shikun & Binui SBI was awarded a tender by the Nigerian government to build an infrastructure project totaling $580 million.
- An investee, in which the Group is a partner together with the Abengoa Group, was chosen as the winning bid in the tender for construction of a thermo-solar power plant in Ashalim – the largest BOT project in Israel, with an estimated cost of $1.1 billion. The project's financial closing is expected to be completed in the second half of 2014.
- Midroog upgraded the rating for the Group's existing debt, and for any new debt raised up to a total of NIS 450 million, to a rating of A1 with a stable outlook. The previous rating for the Group's debt was A2.
With the approval of the financial statements for the second quarter, the Group's board of directors approved a dividend distribution to shareholders of NIS 60 million.
Revenues from projects carried out and sales totaled NIS 1.75 billion in the quarter – growth of 8.3%, compared with Q2 of 2012.
Revenues of the real estate development in Israel segment, carried out by Shikun & Binui Real Estate, grew by 44%, compared with Q2 of 2012, totaling NIS 518 million. The growth was driven by the sale of half of the Company's rights in the Seventh Avenue Shopping Mall in Beer Sheba and from a larger number of built units that were occupied during the quarter (232 compared with 211 in Q2 2012).
Revenues from the Infrastructure and Construction in Israel segment, carried out by Solel Boneh Israel, increased by 9.4%, compared with Q2 of last year, and totaled NIS 501 million. Most of the growth was driven by the Construction Division.
Revenues of the energy segment grew by 270% compared with Q2 last year, totaling NIS 85 million. The increase was driven by the profit from progress in the Group's construction of the photo voltaic power plants
Gross profit totaled NIS 306 million (17.4% of revenues), compared with NIS 350 million in Q2 of 2012 (21.5% of revenues).
The decrease in profitability and gross profitability was driven mainly by the infrastructure and construction outside of Israel segment and by the real estate development in Israel segment. The gross profit of the renewable energy segment increased to NIS 22 million (25.9% of this segment's revenues), compared with NIS 3 million (13.0% of this segment's revenues) in Q2 of 2012.
General and administrative expenses increased in the quarter by 8.1%, reaching NIS 92 million.
Operating profit totaled NIS 203 million (11.5% of revenues), compared with NIS 245 million (15.1% of revenues) in Q2 of 2012. The decrease was driven by the real estate development in Israel segment, and by the infrastructure and construction outside of Israel segment. The renewable energy segment posted operating profit of NIS 12 million, compared with a loss of NIS 6 million in Q2 of 2012.
Net financing costs totaled NIS 49 million, similar to Q2 of last year.
Net profit totaled NIS 96 million, compared with NIS 130 million in Q2 of 2012.
The Group does not revalue its investment properties and they are stated in the financial statements on the basis of historical cost.
Cash flows from operating activities totaled NIS 58.8 million (negative flows) in the quarter.
Shareholders' equity as of 30.6.13 totaled NIS 1.2 billion, compared with NIS 1.1 billion at the end of 2012.
Total assets in the balance sheet amounted to NIS 10.3 billion.
Tal Raz, the Group's CFO: "The Group is presenting net profit, favorable cash flows from operating activities and an impressive dividend yield. We are in the throes of the restructuring of our public debt, in the framework of which 'Midroog' upgraded the Group's debt from A2 to A1 with a stable outlook, based on our financial strength."
Condensed results for the first half of 2013 (NIS millions):
| First half of 2013 |
First half of 2012 |
|||
| Revenues |
3,376 |
3,329 |
||
| Gross profit |
622 |
684 |
||
| Gross margin |
18.4% |
20.5% |
||
| General and administrative expenses |
168 |
167 |
||
| Other income |
56 |
4 |
||
| Operating profit |
493 |
508 |
||
| Operating profit margin |
14.6% |
15.3% |
||
| Net financing costs |
(95) |
(82) |
||
| Equity in losses of investees |
(28) |
(13) |
||
| Taxes on income |
(117) |
(116) |
||
| Net profit |
253 |
297 |
About Shikun & Binui
Shikun & Binui, a member of the Arison Group, is the leading infrastructure and real estate company in Israel. The Group's subsidiaries have been operating since 1924. The Group's companies have gained extensive experience in complex construction and infrastructure projects in Israel and abroad. Shikun & Binui Group has proven achievements in building, residential neighborhoods, commercial and industrial buildings, as well as large-scale transportation, infrastructure and ecological projects, water purification and desalination and development of international projects. In addition, Shikun & Binui also operates in the initiating, planning, construction and operation of projects in renewable energy. Shikun & Binui is a leading, multi-faceted and socially responsible international group that produces balance between the business, social and environmental accomplishment. The group places emphasis on honesty, transparency, innovation, and excellence. The group has accepted upon itself a leadership role in creation of a sustainable and progressive life environment.
The above noted in this release includes forward-looking statements based on Company data, as well as Company plans and estimations based on this data. The activity, results and other data may be substantially different in reality given uncertainty and various risks, including those discussed under risk factors in the Company's financial statements and Director's reports.
| Company Contact: Tal Raz, CFO Shikun & Binui Tel: +972 3 630 1518 email: [email protected] |
Investor Relations Contacts: Nava Ladin GK Investor Relations Tel: +972-3-6074717 email: [email protected] |
| Shikun & Binui Ltd. |
||||||
| Condensed Consolidated Interim Statement of Financial Position as at |
||||||
| June 30 2013 |
June 30 2012 |
December 31 2012 |
||||
| (Unaudited) |
(Audited) |
|||||
| NIS thousands |
NIS thousands |
NIS thousands |
||||
| Assets |
||||||
| Cash and cash equivalents |
808,772 |
870,303 |
1,478,637 |
|||
| Bank deposits |
232,788 |
162,755 |
393,647 |
|||
| Short-term loans and investments |
69,650 |
194,272 |
77,763 |
|||
| Short-term loans to investee companies |
26,172 |
94,194 |
9,770 |
|||
| Trade receivables – accrued income |
1,605,288 |
1,655,944 |
1,325,313 |
|||
| Inventory of buildings held for sale |
1,534,520 |
1,523,109 |
1,739,430 |
|||
| Receivables and debit balances |
368,019 |
317,492 |
329,997 |
|||
| Other investments, including derivatives |
12,561 |
1,213 |
32,524 |
|||
| Current tax assets |
25,064 |
27,635 |
33,950 |
|||
| Inventory |
263,262 |
296,096 |
309,248 |
|||
| Assets classified as held for sale |
617,039 |
2,326 |
2,326 |
|||
| Total current assets |
5,563,135 |
5,145,339 |
5,732,605 |
|||
| Receivables in respect of concession arrangements |
726,389 |
553,343 |
(*)592,627 |
|||
| Non-current inventory of land (freehold) |
371,721 |
462,723 |
449,650 |
|||
| Non-current inventory of land (leasehold) |
385,278 |
393,175 |
351,485 |
|||
| Investment property, net |
542,587 |
363,780 |
397,154 |
|||
| Land rights |
15,474 |
16,119 |
15,850 |
|||
| Receivables, loans and deposits |
673,930 |
(*)308,627 |
(*)351,663 |
|||
| Investments in equity-accounted investees |
279,831 |
(*)487,946 |
487,395 |
|||
| Loans to investee companies |
518,727 |
849,756 |
953,487 |
|||
| Deferred tax assets |
77,526 |
93,557 |
88,892 |
|||
| Property, plant and equipment, net |
989,997 |
1,160,033 |
1,033,513 |
|||
| Intangible assets, net |
125,186 |
123,284 |
143,066 |
|||
| Total non-current assets |
4,706,646 |
4,812,343 |
4,864,782 |
|||
| Total assets |
10,269,781 |
9,957,682 |
10,597,387 |
|||
| (*) Reclassified |
||||||
| Shikun & Binui Ltd. |
||||||
| Condensed Consolidated Interim Statement of Financial Position as at (cont'd) |
||||||
| June 30 |
June 30 |
December 31 |
||||
| (Unaudited) |
(Audited) |
|||||
| NIS thousands |
NIS thousands |
NIS thousands |
||||
| Liabilities |
||||||
| Short-term credit from banks and others |
841,323 |
1,100,053 |
1,192,471 |
|||
| Subcontractors and trade payables |
1,048,681 |
1,059,475 |
(*)892,761 |
|||
| Short-term employee benefits |
136,584 |
(*)126,259 |
(*)145,348 |
|||
| Payables and credit balances including derivatives |
415,023 |
(*)419,818 |
(*)484,853 |
|||
| Current tax liabilities |
92,404 |
120,152 |
75,697 |
|||
| Provisions |
397,820 |
360,749 |
(*)393,747 |
|||
| Payables - customer work orders |
527,992 |
627,894 |
744,996 |
|||
| Advances received from customers |
884,645 |
784,404 |
887,220 |
|||
| Dividend payable |
59,038 |
63,949 |
- |
|||
| Total current liabilities |
4,403,510 |
4,662,753 |
4,817,093 |
|||
| Liabilities to banks and others |
1,848,212 |
1,795,670 |
1,636,252 |
|||
| Debentures |
2,504,362 |
2,053,117 |
2,698,171 |
|||
| Employee benefits |
81,987 |
(*)93,040 |
(*)82,142 |
|||
| Deferred tax liabilities |
56,568 |
53,449 |
60,723 |
|||
| Provisions |
133,015 |
50,761 |
(*)126,230 |
|||
| Excess of accumulated losses over cost of investment |
||||||
| and deferred credit balance in investee companies |
25,661 |
42,074 |
37,489 |
|||
| Total non-current liabilities |
4,649,805 |
4,088,111 |
4,641,007 |
|||
| Total liabilities |
9,053,315 |
8,750,864 |
9,458,100 |
|||
| Equity |
||||||
| Total equity attributable to owners |
||||||
| of the Company |
1,042,987 |
1,056,281 |
977,376 |
|||
| Non-controlling interests |
173,479 |
150,537 |
161,911 |
|||
| Total equity |
1,216,466 |
1,206,818 |
1,139,287 |
|||
| Total liabilities and equity |
10,269,781 |
9,957,682 |
10,597,387 |
|||
| (*) Reclassified |
||||||
| Shikun & Binui Ltd. |
|||||||||
| Condensed Consolidated Interim Statement of Income |
|||||||||
| For the six-month period ended |
For the three-month period ended |
For the |
|||||||
| June 30 |
June 30 |
June 30 |
June 30 |
December 31 |
|||||
| (Unaudited) |
(Unaudited) |
(Audited) |
|||||||
| NIS thousands |
NIS thousands |
NIS thousands |
NIS thousands |
NIS thousands |
|||||
| Revenues from work |
|||||||||
| performed and sales |
3,376,168 |
3,328,850 |
1,754,703 |
1,620,606 |
6,062,875 |
||||
| Cost of work performed |
|||||||||
| and sales |
2,754,385 |
2,644,373 |
1,449,141 |
1,270,771 |
(1)4,879,979 |
||||
| Gross profit |
621,783 |
684,477 |
305,562 |
349,835 |
1,182,896 |
||||
| Gain on sale of |
|||||||||
| investment property |
- |
4,902 |
- |
503 |
7,253 |
||||
| Selling and marketing expenses |
(16,744) |
(18,609) |
(9,827) |
(10,832) |
(35,038) |
||||
| Administrative and general |
|||||||||
| expenses |
(168,115) |
(166,769) |
(92,152) |
(85,239) |
(1) (338,856) |
||||
| Other operating income |
81,837 |
15,389 |
24,728 |
1,300 |
16,393 |
||||
| Other operating expenses |
(26,187) |
(11,086) |
(26,041) |
(10,580) |
(46,175) |
||||
| Operating profit |
492,574 |
508,304 |
202,270 |
244,987 |
786,473 |
||||
| Financing income |
100,537 |
97,661 |
50,875 |
61,653 |
201,101 |
||||
| Financing expenses |
(195,272) |
(179,808) |
(99,449) |
(109,577) |
(1) (334,263) |
||||
| Net financing expenses |
(94,735) |
(82,147) |
(48,574) |
(47,924) |
(133,162) |
||||
| Share of losses of equity |
|||||||||
| accounted investees (net of tax) |
(27,816) |
(13,230) |
(2,891) |
(9,202) |
(34,063) |
||||
| Profit before taxes on income |
370,023 |
412,927 |
150,805 |
187,861 |
619,248 |
||||
| Taxes on income |
(117,467) |
(116,336) |
(54,616) |
(57,689) |
(1) (171,338) |
||||
| Profit for the period |
252,556 |
296,591 |
96,189 |
130,172 |
447,910 |
||||
| Attributable to: |
|||||||||
| Owners of the Company |
228,573 |
278,561 |
85,797 |
120,136 |
(1)412,255 |
||||
| Non-controlling interests |
23,983 |
18,030 |
10,392 |
10,036 |
35,655 |
||||
| 252,556 |
296,591 |
96,189 |
130,172 |
447,910 |
|||||
| Basic earnings per share |
|||||||||
| (in NIS) |
0.57 |
0.70 |
0.21 |
0.30 |
1.03 |
||||
| Diluted earnings per share |
|||||||||
| (in NIS) |
0.57 |
0.70 |
0.21 |
0.30 |
1.03 |
||||
| Number of shares used in the |
|||||||||
| computation of basic earnings |
|||||||||
| per share (in thousands) |
400,497 |
397,362 |
400,718 |
398,017 |
398,063 |
||||
| Number of shares used in the |
|||||||||
| computation of diluted |
|||||||||
| earnings per share |
|||||||||
| (in thousands) |
401,024 |
398,537 |
401,169 |
398,506 |
398,471 |
||||
| (1) Retrospective application of amended IAS 19, Employee Benefits |
|||||||||
| Operating Segments |
|||||||||||||||||||
| For the six month period ended June 30, 2013 |
|||||||||||||||||||
| Infrastructures |
Infrastructures |
Real estate |
Real estate |
Concessions |
Renewable |
Water |
Other |
Adjustments |
Consolidated |
||||||||||
| (Unaudited) |
|||||||||||||||||||
| NIS thousands |
|||||||||||||||||||
| Total external revenues |
1,501,309 |
744,224 |
840,337 |
7,011 |
81,636 |
182,741 |
18,910 |
- |
- |
3,376,168 |
|||||||||
| Inter-segment revenues |
- |
207,610 |
19 |
- |
- |
- |
174 |
- |
(207,803) |
- |
|||||||||
| Total revenues |
1,501,309 |
951,834 |
840,356 |
7,011 |
81,636 |
182,741 |
19,084 |
- |
(207,803) |
3,376,168 |
|||||||||
| Segment profit (loss) before |
|||||||||||||||||||
| income tax |
218,134 |
37,233 |
229,660 |
(29,251) |
23,545 |
8,280 |
(21,055) |
3,255 |
(99,778) |
370,023 |
|||||||||
| For the six month period ended June 30, 2012 |
|||||||||||||||||||
| Infrastructures |
Infrastructures |
Real estate |
Real estate |
Concessions |
Renewable |
Water |
Other |
Adjustments |
Consolidated |
||||||||||
| (Unaudited) |
|||||||||||||||||||
| NIS thousands |
|||||||||||||||||||
| Total external revenues |
1,747,645 |
773,039 |
642,109 |
4,939 |
83,060 |
60,964 |
17,094 |
- |
- |
3,328,850 |
|||||||||
| Inter-segment revenues |
- |
143,817 |
38 |
- |
- |
- |
- |
- |
(143,855) |
- |
|||||||||
| Total revenues |
1,747,645 |
916,856 |
642,147 |
4,939 |
83,060 |
60,964 |
17,094 |
- |
(143,855) |
3,328,850 |
|||||||||
| Segment profit (loss) before |
|||||||||||||||||||
| income tax |
289,146 |
32,753 |
195,434 |
5,360 |
26,039 |
(13,124) |
(7,713) |
(1,393) |
(113,575) |
412,927 |
|||||||||
|
Operating Segments (cont'd)
|
|||||||||||||||||||
| For the three month period ended June 30, 2013 |
|||||||||||||||||||
| Infrastructures |
Infrastructures |
Real estate |
Real estate |
Concessions |
Renewable |
Water |
Other |
Adjustments |
Consolidated |
||||||||||
| (Unaudited) |
|||||||||||||||||||
| NIS thousands |
|||||||||||||||||||
| Total external revenues |
717,715 |
407,195 |
518,579 |
3,262 |
12,184 |
85,069 |
10,699 |
- |
- |
1,754,703 |
|||||||||
| Inter-segment revenues |
- |
93,782 |
- |
- |
- |
- |
174 |
- |
(93,956) |
- |
|||||||||
| Total revenues |
717,715 |
500,977 |
518,579 |
3,262 |
12,184 |
85,069 |
10,873 |
- |
(93,956) |
1,754,703 |
|||||||||
| Segment profit (loss) before |
|||||||||||||||||||
| income tax |
94,259 |
11,816 |
85,482 |
(5,281) |
19,435 |
5,799 |
(14,576) |
3,414 |
(49,543) |
150,805 |
|||||||||
| For the three month period ended June 30, 2012 |
|||||||||||||||||||
| Infrastructures |
Infrastructures |
Real estate |
Real estate |
Concessions |
Renewable |
Water |
Other |
Adjustments |
Consolidated |
||||||||||
| (Unaudited) |
|||||||||||||||||||
| NIS thousands |
|||||||||||||||||||
| Total external revenues |
806,845 |
379,279 |
360,751 |
2,602 |
39,313 |
23,090 |
8,726 |
- |
- |
1,620,606 |
|||||||||
| Inter-segment revenues |
- |
78,837 |
19 |
- |
- |
- |
- |
- |
(78,856) |
- |
|||||||||
| Total revenues |
806,845 |
458,116 |
360,770 |
2,602 |
39,313 |
23,090 |
8,726 |
- |
(78,856) |
1,620,606 |
|||||||||
| Segment profit (loss) before |
|||||||||||||||||||
| income tax |
119,489 |
24,584 |
119,178 |
(8,800) |
17,443 |
(9,318) |
(3,390) |
(258) |
(71,067) |
187,861 |
|||||||||
| Operating Segments (cont'd) |
|||||||||||||||||||
| For the year ended December 31, 2012 |
|||||||||||||||||||
| Infrastructures |
Infrastructures |
Real estate |
Real estate |
Concessions |
Renewable |
Water |
Other |
Adjustments |
Consolidated |
||||||||||
| (Audited) |
|||||||||||||||||||
| NIS thousands |
|||||||||||||||||||
| Total external revenues |
3,120,931 |
1,413,117 |
1,203,243 |
17,305 |
143,857 |
126,104 |
38,318 |
- |
- |
6,062,875 |
|||||||||
| Inter-segment revenues |
- |
311,309 |
76 |
- |
- |
- |
- |
- |
(311,385) |
- |
|||||||||
| Total revenues |
3,120,931 |
1,724,426 |
1,203,319 |
17,305 |
143,857 |
126,104 |
38,318 |
- |
(311,385) |
6,062,875 |
|||||||||
| Segment profit (loss) before |
|||||||||||||||||||
| income tax |
(*) 451,393 |
(*)49,755 |
(*)370,857 |
(29,773) |
44,820 |
(35,018) |
(16,740) |
(2,521) |
(*)(213,525) |
619,248 |
|||||||||
| (*) Reclassified |
|||||||||||||||||||
SOURCE Shikun & Binui Ltd.
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