The reasons why Ellaktor, as well as Avax, seek to maintain the concession contract of Attiki Odos that expires in October 2024, in the new tender promoted by the Hellenic Republic Asset Development Fund (HRADF) are revealed in the prospectus on its share capital increase.
Ellaktor currently relies heavily on the profits generated by Attiki Odos and non-renewal of this concession after 2024 would have a serious impact on earnings.
The concession of Attiki Odos produces a significant part of the group's operating cash flows, according to the prospectus. Specifically, for 2020, the concession contributed 151.6 million to the group's total revenue of 892.3 million and 105.6 million to the group's total earnings before interest, taxes, depreciation and amortization (EBITDA), amounting to 30 million. For the fiscal year 2019, the concession of Attiki Odos contributed 192.7 million to total revenues and 134 million to EBITDA.
In the first quarter of this year, Attiki Odos contributed 30.6 million to the group's total revenue, amounting to 193 million and almost half (18.6 million). of the group's total EBITDA of 40 million euros. As the management of Ellaktor points out, the other road concessions (Olympia Odos, Aegean Motorway) are not fully consolidated in the group’s financial statements and are at early stages. Thus, despite the fact that they are expected to contribute to the group's income through the distribution of dividends to it and / or its cash flows, through repayment of loans they have received from the group, the concession of Attiki Odos SA. remains the most mature concession project.
For this reason, management emphasizes in the prospectus that it intends to participate in the tender for the extension of the concession, beyond its expiration in 2024. The start and completion date of the tender has not yet been set. It is pointed out that, if the concession of Attiki Odos does not remain in the current consortium Ellaktor- Avax then at its expiration, in October 2024, the remaining cash of the company that owned the concession will be distributed, after payment of all liabilities to its shareholders over a period of three years.
Based on the balance sheet 31.12.2020, and after the conversion of part of its share capital into a secondary loan of 83 million, as it took place on 16.04.2021, the amount to be repaid to the shareholders is estimated at approximately 91 million (of which amount 60 million euros or 65.75% corresponds to the shareholders of Ellaktor Group).