UPDATE 1-Russian housebuilder PIK Group swings to H1 net loss

Tue Sep 18, 2012 6:59am EDT

Related News

* Posts 900 million rouble net loss vs year-ago profit

* Interest costs up to 2.8 bln rbls from 1.3 bln in H1 2011

* Revenue falls to 15 bln roubles from 23 bln the year earlier

* EBITDA down to 1.8 bln rbls from 5.5 bln rbls

MOSCOW, Sept 18 (Reuters) - PIK Group, one of Russia's largest homebuilders, said on Tuesday it swung to a net loss in the first half year due to high interest expenses.

The company, part-owned by billionaire Suleiman Kerimov, said net loss in the January through June period totalled 900 million roubles ($29.43 million) after a net profit of 3.2 billion roubles in the first half of last year.

The result is broadly in line with analysts' expectations.

PIK said its interest expenses grew but so did its debt, the latter reaching 43.2 billion roubles at the end of the first half.

Its total revenue fell by a third to 15 billion roubles due to slower project completions, related to the company's construction schedule.

PIK plans to transfer the bulk of housing to customers in the second half.

"The second half of the year will see building revenues as new buildings are completed and the transfer of apartments to customers gathers pace," the company said in a statement.

It also reiterated full-year guidance on new sales to customers within the range of 600,000-650,000 square metres with corresponding total cash collections of 62-67 billion roubles.

The company, which specialises in low cost housing, also said its earnings before interest, taxation, depreciation and amortisation (EBITDA) fell to 1.8 billion roubles from 5.5 billion roubles the year earlier.