Le Lézard
Classified in: Business
Subjects: ERN, CCA, ACC

Shikun & Binui Reports Results of the First Half of 2019 With NIS 486 Million in Net Profit


AIRPORT CITY, Israel, Aug. 21, 2019 /PRNewswire/ -- Shikun & Binui Ltd. (TASE: SKBN.TA), a global construction and infrastructure company headquartered in Israel, today reported its financial results for the second quarter and first half, ended June 30, 2019.

FINANCIAL HIGHLIGHTS OF THE FIRST HALF OF 2019

REAL ESTATE ACTIVITIES 

In the first half of 2019, housing sales totaled 1,089 housing units (in 100% terms), amounting to NIS 1.2 billion, of which 709 housing units were in Israel and 380 housing units were in Europe

Apartment deliveries were 1,013 (in 100% terms), of which 421 were housing units in Israel and 592 were housing units in Europe.

Additional Data on Company's Sale of Apartments (signed contracts) during First Half of 2019:


Apartments under
Company management
including partner share

Consolidated
Projects ?

Effective Portion

Projects Under
Joint Control

Israel




Sales

(NIS millions)

1,014

926

-

Number of apartment sale contracts
signed

709

673

-

Average price of apartments sold

(NIS thousands)

1,430

1,376

-

Europe




Sales

(NIS millions)

203

133

26

Number of apartment sale contracts
signed

380

286

27

Average price of apartments sold

(NIS thousands)

534

465

959

 

Data Regarding Delivery of Apartments to Customers during First Half of 2019:


Consolidated
Projects

Projects Under
Joint Control

Europe



Revenues from apartments delivered (NIS millions)

232

29

Number of units delivered

427

37

Average price of apartments delivered (NIS thousands)

544

786

Israel Real Estate: Significant increase in the volume of transactions signed during the first half of the Or Yam project

RED International Real Estate: Significant Increase in Income and Profit Following delivery of 592 Housing during the first half of the year

Successful realization of most of the Group's shares in ADO

The company completed four transactions to sell 30% of ADO Group shares for approximately NIS 720 million, following which it recorded a pre-tax profit of NIS 480 million, as well as pre-tax profit from revaluation of the remaining balance of the Company's investment in ADO Group (7.5%) amounting to approximately NIS 59 million.

PROJECT CONTRACTING

Solel Boneh: Significant volume of wins for new projects since the beginning of the year

SBI International Infrastructure and Construction (excluding US): Significant improvement in profitability

SBA US Infrastructure and Construction Contracting: Continued to broaden operations and implement US expansion strategy

PROJECTS AND INCOME GENERATING ASSETS

In April, all approvals were required to operate the Ashalim project

The project totals the supply of 121 megawatts of electricity, for an operating period ending in 2043.

Road 6 Operating Company (Derech Eretz) Transaction

In May, Keystone REIT Ltd. entered into an agreement for the acquisition of the Road 6 Operating Company (Derech Eretz) from third parties with some of the holdings expected to be transferred to the Shikun & Binui.

As the transactions and agreements are executed, the Company is expected to increase its control of the Road 6 Operating Company and record an estimated profit of NIS 100 million as a result of the investment revaluation.

Genari 2 Transaction

In June, the sale of the Genari 2 project was completed, a BOT project with a construction cost of NIS 515 million for the planning, construction, maintenance and financing of the new Jerusalem Government Campus. Net proceeds from the transaction amounted to NIS 79 million and a profit after tax of NIS 34 million.

Continued takes steps to reduces financial leverage

The Company's financial debt as at June 30, 2019 was NIS 8.0 billion, compared with NIS 8.4 billion as of December 31, 2018.

Net financial debt, excluding non-recourse loans, was NIS 3.5 billion at the end of June, compared with NIS 4.0 billion at the end of 2018.

Streamlining

Management continued implementing steps to reduce expenses across the Group.

On May 26, 2019, following the approval of the Compensation Committee and the Board of Directors of the Company, the Company approved the engagement of Mr. Lapidot's terms and employment as the Company's CEO. Mr. Lapidot began his term on June 2, 2019.

INVESTORS CONFERENCE CALL

Shikun & Binui will host a conference call in English for investors on August 21, 2019 starting at 10:30am Eastern Time to discuss the financial results. Management will also be available to answer investor's questions, after presenting the results.

To participate, please call one of the following teleconferencing numbers:

US:

1-888-407-2553

UK:

0-800-917-9141

Israel:

03-918-0650

International:

+972-3-918-0650

At: 10:30am Eastern Time, 7:30am Pacific Time, 3:30pm UK Time, 5:30pm Israel Time

For those unable to participate, the teleconference will be available for replay on the company's website at http://en.shikunbinui.co.il/ beginning 24 hours after the call.

ABOUT THE SHIKUN & BINUI GROUP

Shikun & Binui is Israel's leading infrastructure and real estate company ? a global corporation that operates through its subsidiaries in Israel and across the world. Active in more than 20 countries on four continents, Shikun & Binui is involved in various fields, including infrastructure, real estate development, water, energy, and concessions.

SAFE HARBOR STATEMENT

This summary announcement was prepared solely for the convenience of the reader and does not replace Shikun & Binui Ltd.'s (hereafter ? "the Company") full report. The information contained in this announcement is, by its nature, incomplete. All of its contents are provided as a supplement to the Company's report, and are subject to the declarations therein stated. This announcement includes forecasts, assessments, estimates and other information relating to the Company or its subsidiaries, or to other parties or to future events and matters, the extent of whose realization is not certain and is not under the sole control of the Company (forward-looking information, as defined in the Securities Law-1968). The key facts and data serving as the basis for this information are facts and data, among others, related to the current status of the Company and its businesses, facts and data relating to the current status of the operating segments in which the Company engages in its areas of operation, and other macroeconomic facts and data known to the Company on the preparation date of this presentation.

It is understood that forward-looking information does not constitute a fact and is based solely on subjective assessments. Forward-looking information is uncertain and for the most part, is not under the Company's control. The realization or non-realization of the forward-looking information will be influenced, among others, by the risk factors that characterize the Company's operations, as well as developments in the general environment and external factors that impact the Company's operations. The Company's future results and achievements could differ significantly from those presented in this presentation. The Company is not obligated to update or modify the said forecast or assessment, and is not obligated to update this announcement. This announcement does not constitute an offer to purchase the Company's securities or an invitation to receive such offers. An investment in securities in general, and in the Company in particular, carries risk. One must take into account that past data do not necessarily indicate future performance.


 

Condensed Consolidated Interim Statements of Financial Position as at








June 30

June 30

December 31



2019

2018

2018



(Unaudited)

(Audited)



NIS thousands

NIS thousands

NIS thousands






Assets





Cash and cash equivalents


2,420,067

2,461,346

2,491,867

Bank deposits


774,132

531,743

781,879

Short-term loans and investments


173,071

91,303

129,150

Short-term loans to investee companies


13,663

5,035

25,001

Trade receivables ? accrued income


3,008,727

2,716,667

2,830,251

Inventory of buildings held for sale


1,681,839

1,630,602

1,587,147

Receivables and debit balances


417,505

525,504

497,394

Other investments, including derivatives


476,843

271,163

376,642

Current tax assets


50,085

19,218

39,287

Inventory


162,324

190,428

160,518

Assets classified as held for sale


-

737,371

716,062

Total current assets


9,178,256

9,180,380

9,635,198






Receivables and contract assets





 in respect of concession arrangements


1,219,536

654,451

1,065,753

Non-current inventory of land (freehold)


989,352

1,129,682

938,127

Non-current inventory of land (leasehold)


489,286

463,335

705,172

Investment property, net


984,425

747,556

862,282

Land rights


13,431

13,420

13,422

Receivables, loans and deposits


235,836

456,205

211,766

Investments in equity-accounted investees


498,136

587,529

403,773

Loans to investee companies


1,154,886

448,805

1,099,937

Deferred tax assets


155,491

155,025

299,144

Property, plant and equipment, and right-of-use assets


1,426,263

996,848

1,076,317

Intangible assets, net


442,933

283,966

364,911

Total non-current assets


7,609,575

5,936,822

7,040,604






Total assets


16,787,831

15,117,202

16,675,802

 

 

Condensed Consolidated Interim Statements of Financial Position as at (cont'd)








June 30

June 30

December 31



2019

2018

2018



(Unaudited)

(Audited)



NIS thousands

NIS thousands

NIS thousands






Liabilities





Short-term credit from banks and others


1,517,719

1,691,406

1,529,542

Subcontractors and trade payables


1,678,399

1,389,517

1,657,591

Short-term employee benefits


174,101

136,050

160,792

Payables and credit balances including derivatives


544,548

580,206

638,652

Current tax liabilities


93,364

72,683

84,623

Provisions


177,026

253,368

172,364

Payables - customer work orders


1,565,590

1,285,345

1,483,675

Advances received from customers


508,153

421,194

323,684

Liabilities classified as held for sale


-

371,301

360,954

Dividend payable


60,000


-

Total current liabilities


6,318,900

6,201,070

6,411,877






Liabilities to banks and others


3,354,157

2,456,022

3,200,074

Debentures


3,455,895

3,659,246

3,680,283

Employee benefits


44,795

49,329

46,130

Deferred tax liabilities


109,451

82,285

119,665

Provisions


172,164

237,047

260,418

Excess of accumulated losses over cost of investment





 and deferred credit balance in investee companies


165,241

59,701

97,408

Total non-current liabilities


7,301,703

6,543,630

7,403,978






Total liabilities


13,620,603

12,744,700

13,815,855






Equity





Total equity attributable to owners of the Company


2,826,012

2,096,257

2,531,765

Non-controlling interests


341,216

276,245

328,182

Total equity


3,167,228

2,372,502

2,859,947
















Total liabilities and equity


16,787,831

15,117,202

16,675,802

 

 

Condensed Consolidated Interim Statements of Income (Loss)














For the six-month period ended

For the three-month period ended

For the

year ended


June 30

June 30

June 30

June 30

December 31


2019

2018

2019

2018

2018


(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

(Audited)


NIS thousands

NIS thousands

NIS thousands

NIS thousands

NIS thousands







Revenues from work






 performed and sales

3,101,915

2,738,400

1,614,795

1,382,982

6,331,518

Cost of work performed






 and sales

(2,638,878)

(2,413,633)

(1,387,756)

(1,214,205)

(5,371,928)







Gross profit

463,037

324,767

227,039

168,777

959,590







Gain on sale of






 investment property

1,608

26,219

1,918

23,248

125,949

Selling and marketing expenses

(21,576)

(18,735)

(9,050)

(8,531)

(40,089)

Administrative and general






 expenses

(241,925)

(205,040) (*)

(149,534)

(107,457) (*)

(415,472)

Share of profits (losses)






 of equity accounted






 investees (net of tax)

(65,924)

19,145

(29,046)

20,121

19,141

Other operating income

721,163

339,934

106,832

333,450

389,504

Other operating expenses

(8,610)

(58,778) (*)

(3,838)

(47,316) (*)

(135,578)







Operating profit

847,773

427,512

144,321

382,292

903,045







Financing income

234,332

146,586

110,446

45,977

261,136

Financing expenses

(362,336)

(276,598)

(237,616)

(182,118)

(530,652)







Net financing expenses

(128,004)

(130,012)

(127,170)

(136,141)

(269,516)







Profit before taxes






 on income

719,769

297,500

17,151

246,151

633,529

Taxes on income

(234,037)

(94,766)

(50,155)

(70,649)

(74,233)







Profit (loss) for the period

485,732

202,734

(33,004)

175,502

559,296







Attributable to:






Owners of the Company

464,802

186,287

(43,898)

169,188

494,995

Non-controlling interests

20,930

16,447

10,894

6,314

64,301








485,732

202,734

(33,004)

175,502

559,296







Basic earnings per






 share (in NIS)

1.16

0.47

(0.11)

0.42

1.24







Diluted earnings per






 share (in NIS)

1.15

0.46

(0.11)

0.42

1.22







(*)           Reclassified.






 

 

Condensed Consolidated Interim Statements of Comprehensive Income (Loss)











For the



For the three-month period ended

year ended



March 31

March 31

December 31



2019

2018

2018



(Unaudited)

(Audited)



NIS thousands

NIS thousands

NIS thousands






Profit for the period


518,736

27,232

559,296






Other comprehensive income (loss)










Other comprehensive income (loss) items that





 after initial recognition in comprehensive





 income were or will be transferred to





 profit or loss










Foreign currency translation differences





 for foreign operations


(107,330)

63,607

227,416






Effective portion of change in





 fair value of hedge of foreign operation


5,240

(1,880)

(11,240)






Net change in fair value of financial assets at fair value





through other comprehensive income, net of tax


18,885

(17,721)

13,398






Effective portion of change in





 fair value of cash flow hedge


14,496

9,511

17,447






Other comprehensive loss  items that will





 not be transferred to profit loss










Re-measurement of defined benefit plan, net of tax


-

-

141






Total other comprehensive income (loss)


(68,709)

53,517

247,162






Total comprehensive income for the period


450,027

80,749

806,458






Total comprehensive income attributable to:










Owners of the Company


439,507

70,652

736,807






Non-controlling interests


10,520

10,097

69,651






Total comprehensive income for the period


450,027

80,749

806,458

 

 

Operating Segments



For the six month period ended June 30, 2019 (unaudited)



Infrastructures











and










Infrastructures

construction

Infrastructures









and

(international)

and

Real estate

Real estate







construction

(excluding

construction

development

development







(Israel)

USA)

(USA)

(Israel)

(international)

Concessions

Energy

Other

Adjustments

Consolidated


NIS thousands












Total external revenues

1,322,412

675,183

329,670

469,052

298,305

30,939

105,801

22,310

(151,757)

3,101,915

Inter-segment revenues

205,789

-

-

38

-

-

-

-

(205,827)

-












Total revenues

1,528,201

675,183

329,670

469,090

298,305

30,939

105,801

22,310

(357,584)

3,101,915












Segment profit (loss) before











 income tax

63,435

101,480

(79,616)

64,554

64,614

140,527

844

523,838

(159,907)

719,769

 

 


For the six month period ended June 30, 2018 (unaudited)



Infrastructures











and










Infrastructures

construction

Infrastructures









and

(international)

and

Real estate

Real estate







construction

(excluding

construction

development

development







(Israel)

USA)

(USA)

(Israel)

(international)

Concessions

Energy

Other

Adjustments

Consolidated


NIS thousands












Total external revenues

1,429,711

643,520

241,805

476,424

74,816

22,336

88,625

20,702

(259,539)

2,738,400

Inter-segment revenues

129,784

-

-

38

-

-

-

-

(129,822)

-












Total revenues

1,559,495

643,520

241,805

476,462

74,816

22,336

88,625

20,702

(389,361)

2,738,400












Segment profit (loss) before











 income tax

52,693

(56,973)

23,827

101,582

(18,444)

346,922

(9,747)

(16,673)

(125,687)

297,500

 

 

Operating Segments (cont'd)






















For the three month period ended June 30, 2019 (unaudited)



Infrastructures











and










Infrastructures

construction

Infrastructures









and

(international)

and

Real estate

Real estate







construction

(excluding

construction

development

development







(Israel)

USA)

(USA)

(Israel)

(international)

Concessions

Energy

Other

Adjustments

Consolidated


NIS thousands












Total external revenues

662,688

353,299

250,968

224,054

153,220

16,971

33,779

10,305

(90,489)

1,614,795

Inter-segment revenues

108,102

-

-

19

-

-

-

-

(108,121)

-












Total revenues

770,790

353,299

250,968

224,073

153,220

16,971

33,779

10,305

(198,610)

1,614,795












Segment profit (loss) before











 income tax

40,561

41,839

(46,754)

18,306

38,375

103,323

(14,233)

(55,918)

(108,348)

17,151

 

 


For the three month period ended June 30, 2018 (unaudited)



Infrastructures











and










Infrastructures

construction

Infrastructures









and

(international)

and

Real estate

Real estate







construction

(excluding

construction

development

development







(Israel)

USA)

(USA)

(Israel)

(international)

Concessions

Energy

Other

Adjustments

Consolidated


NIS thousands












Total external revenues

763,198

321,362

135,462

202,426

56,540

11,572

28,160

11,441

(147,179)

1,382,982

Inter-segment revenues

57,274

-

-

19

-

-

-

-

(57,293)

-












Total revenues

820,472

321,362

135,462

202,445

56,540

11,572

28,160

11,441

(204,472)

1,382,982












Segment profit (loss) before











 income tax

24,196

(68,780)

9,034

41,786

(9,289)

323,256

1,103

(8,909)

(66,246)

246,151

 

 

Operating Segments (cont'd)





















For the year ended December 31, 2018 (audited)



Infrastructures











and










Infrastructures

construction

Infrastructures









and

(international)

and

Real estate

Real estate







construction

(excluding

construction

development

development







(Israel)

USA)

(USA)

(Israel)

(international)

Concessions

Energy

Other

Adjustments

Consolidated


NIS thousands












Total external revenues

1,355,063

2,850,687

485,278

987,301

499,354

55,910

503,563

45,184

(450,822)

6,331,518

Inter-segment revenues

-

433,445

-

76

-

-

-

-

(433,521)

-












Total revenues

1,355,063

3,284,132

485,278

987,377

499,354

55,910

503,563

45,184

(884,343)

6,331,518












Segment profit (loss) before 











 income tax

(41,379)

87,165

15,252

315,133

88,431

380,333

40,061

(30,711)

(220,756)

633,529

 

 

 

CONTACTS

Shikun & Binui

Investor Relations 

Leon Vasilnitzky

Ehud Helft

+972 (3) 630 5894

GK Investor & Public Relations

[email protected]

+1 617 418 3096


[email protected]

SOURCE Shikun & Binui Ltd.


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