Successful start to the year for the TORPOL Group
The TORPOL Group, one of the leading entities in the market for the construction and modernization of railway infrastructure in Poland, recorded the highest profits in its history in Q1 2022. Consolidated gross profit on sales amounted to approximately PLN 31 million (+88 per cent, y/y), EBITDA amounted to PLN 29 million (+104 per cent, y/y) and net profit to approximately PLN 20.3 million (+211 per cent, y/y). Net sales revenues of the Group amounted to over PLN 208 million (-5 per cent, y/y).
The Group’s backlog of orders at the end of Q1 2022 was just under PLN 1.1 billion net. The Group has no net debt and is in a very good financial and liquidity position, as reflected by its record cash position of approximately PLN 0.47 billion at the end of March this year. (+10% q/q).
This was the best first quarter in the history of the company. Such good financial performance is the result of consistent and committed work of all our employees, optimization of technological and logistic processes as well as effective use of specialist technical facilities, which have been strongly developed in recent years. Our business partners, i.e. suppliers and subcontractors as well as good cooperation with the ordering party and the Contract Engineer also play a very important role in achieving these results. Due to this, we have effectively limited the materialization of risks assumed in the valuation, realizing some contracts with higher than planned margins.
The main challenge for the next quarters is to build a portfolio of orders. That is why we are extremely pleased with the recently announced proceedings and the announcement of the prompt release of financial resources from the European funds under the KPO. This means that it will soon be possible to increase the number of tender procedures, which the construction industry is waiting for and which the whole Polish economy needs. I hope that many of the decisions in these tender proceedings will be made this year – said Grzegorz Grabowski, President of TORPOL S.A.
In 2022, PKP PLK has announced 14 tender proceedings for a total estimated amount of over PLN 12 billion net. The value of all bids submitted by the Company by the end of March this year amounted to approximately PLN 8.72 billion net. By the end of the first half of this year. TORPOL plans to submit offers in the remaining 5 proceedings organized by PKP PLK. The proceedings organized by PKP PLK are two-stage proceedings, in which the final value of the offers will be determined after an electronic auction.
The Company also takes an active part in proceedings organized by other entities, e.g. it decided to submit an application in the proceedings organized by the Central Port of Communications concerning Preliminary Market Consultations with general contractors in the railway segment.
The CPK is likely to become the largest Polish rail network manager in the next few years, following PKP PLK, which will be responsible for the implementation of rail projects with values similar to those planned by the primary recipient of our services. This is why we are interested in actively participating in market consultations and the subsequent implementation of announced procedures. These activities will allow for further development of the company and the diversification of entities operating in the field of railway infrastructure – President added.
Torpol Oil & Gas (TOG) has also been consistently developing its operations, gradually strengthening its position in the oil & gas sector and increasing the scale of operations. The subsidiary has built a record-breaking backlog of orders with a net value of approximately PLN 112.7 million. TOG together with TORPOL are currently participating in tender proceedings with a total estimated value of over PLN 680 million net.
The Group plans to spend around PLN 22.9 million on investments in 2022, mainly for the purchase of equipment and machinery for the modernization of railway lines, vehicles for the repair and installation of catenary lines, means of transport, and the further development of software and IT devices.