Shikun & Binui Reports Results for Second Quarter of 2013

Sun Aug 25, 2013 10:12am EDT

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Shikun & Binui Reports Results for Second Quarter of 2013

PR Newswire

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: tal_r@shikunbinui.com

Investor Relations Contacts:

Nava Ladin

GK Investor Relations

Tel: +972-3-6074717

email: nava@gk-biz.com

 

 







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
2013


June 30
2012


December 31
2012



(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
year ended


June 30
2013


June 30
2012


June 30
2013


June 30
2012


December 31
2012


(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
and
construction
outside of
Israel


Infrastructures
and
construction
in Israel


Real estate
development
in Israel


Real estate
development
outside of
Israel


Concessions


Renewable
energy


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
and
construction
outside of
Israel


Infrastructures
and
construction
in Israel


Real estate
development
in Israel


Real estate
development
outside of
Israel


Concessions


Renewable
energy


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
and
construction
outside of
Israel


Infrastructures
and
construction
in Israel


Real estate
development
in Israel


Real estate
development
outside of
Israel


Concessions


Renewable
energy


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
and
construction
outside of
Israel


Infrastructures
and
construction
in Israel


Real estate
development
in Israel


Real estate
development
outside of
Israel


 

Concessions


Renewable
energy


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
and
construction
outside of
Israel


Infrastructures
and
construction
in Israel


Real estate
development
in Israel


Real estate
development
outside of
Israel


Concessions


Renewable
energy


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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