Ellaktor offloads high debts and looks for new sources of income

With 367 million euros of net borrowing at the end of the first half and with the impending collection of 683 million euros from the sale of 75% of the RES sector (Anemos) to Motor Oil, it is evident that Ellaktor is turning the page and from an over-leveraged entity with high financial costs is transforming into a financially healthy group with an increase in turnover and operating profits in all its activities.

Even the construction sector, which has been a drain on the group, showed marginally positive EBITDA in the first half and net losses narrowed to €7.2m from €67m in the first half of 2021. In terms of turnover and operating profits, all activities (construction, concessions, RES, real estate) except Elektor showed an increase. Even in Elektor, however, the comparable figures are improving as management proceeded with a forecast of 9 million in revenue and 8 million in EBITDA due to the tax on excess profits in energy that will be imposed by the government. It is noted that Elektor, although active in waste management, also has an installed capacity of 33MW from biogas.

In the first half earnings, management separated the figures into ongoing and discontinued activities in view of the sale of Anemos. A first look at EBITDA shows the significant contribution of RES to overall operating profits. Out of the 117 million euros (+134%) of the total operating profits, 43 million euros came from Anemos, which will be lost after the sale of the branch to Motor Oil.

During the presentation to analysts, the management argued that in the last twelve months growth comes mainly from the other activities, as the figures of Anemos are more or less stable. In particular, the group's turnover at the end of the first half of 2021 was 847 million, of which 747 million came from continuing activities and 100 million from Anemos. At the end of the first half of 2022, turnover stood at 1 billion euros, of which 894 million euros came from continuing operations and 108 million euros from RES.

Roughly the same picture is seen with EBITDA. On 6/30/2020 the operating profits of RES were 77 million euros and the other activities had a negative EBITDA of 38 million euros. Twelve months later, the EBITDA of RES reached 87 million euros and the other activities "turned" positive to 153 million euros. The elimination of borrowing and the claim of the Attica Road

The management of Ellaktor had stated that the money from Anemos will be directed to the repurchase of the bond of 670 million euros with an interest rate of 6.4% which annually costs the group 43 million euros in interest. A proposal has already been made to bondholders with a price of 1,010 euros for each bond of 1,000 euros (price 101) along with the payment of interest. The deadline for acceptance of the offer expires on September 21, but an extension may be given.

According to the managing director of Ellaktor, Thymios Bouloutas, the traffic on Attiki Odos increased by 28% in the first half of 2022. The group is seeking the extension to the Attiki Odos concession together with Adrian and AVAX with better prospects now, since in addition to the imminent elimination of borrowing, there has also been an improvement in administrative operations following the departure of the shipowners from the equity composition. The challenge still is the definitive consolidation of AKTOR and the seamless execution of the company's projects as the backlog of contracts has exceeded 2.8 million euros. At the same time, there will be increased financial needs to implement the ambitious projects of the subsidiary Reds in Gournes, Ktima Kamba and Marina Alimos.