TORPOL increases profits and records a high cash in hand standing
After three quarters of 2020 TORPOL S.A., one of the leading entities on the market of construction and modernization of railroad infrastructure in Poland, recorded 26.3 million PLN of consolidated net profit compared to 22.1 million PLN (increase by 16.4 percent y/y) a year earlier. Revenues from sales and EBITDA of Torpol Capital Group amounted to PLN 986.3 million and PLN 53.5 million, respectively, compared to PLN 1 060.9 million (down 7.3 percent y/y) and 47 million PLN (up 14.0 percent y/y) a year earlier. The company is in a very good financial condition, which was reflected in a high cash position and lack of net debt.
– The results achieved after three quarters, achieved in an extremely difficult business environment, I assess in a positive way. Despite restrictions on construction sites related to the current state of the epidemic and internal regulations concerning work safety, the Group efficiently adapted to the new conditions, maintained continuity on construction sites and achieved more than a good margin. The Group’s financial and liquidity situation remains stable, as confirmed by over PLN 354 million in cash in the Group’s balance sheet. Despite this, we maintain a safety buffer in the form of credit limits providing additional access to financing of operations in case of negative events in the market environment – says Grzegorz Grabowski, the President of TORPOL S.A.
The good results of the Capital Group were also positively influenced by the increasing sales and margins achieved by Torpol Oil&Gas.
– The progress in increasing sales volume, economic efficiency and market recognition, over the last two years, continues to be gradual and it is expected to grow in the coming years as well. The basis of Torpol Oil&Gas activity is their competence in the design and implementation of technological, highly innovative systems and equipment in the areas of oil and gas refining and extraction, as well as the chemical industry. The company currently holds a backlog of about PLN 70 million and implements projects for the largest clients on these markets in Poland – emphasizes Grzegorz Grabowski.
The company monitors the situation related to the pandemic on an ongoing basis. – Currently, our efforts are aimed at maintaining the smooth implementation of projects while maintaining all safety measures under the sanitary regime and satisfactory profitability of contracting projects. So far, construction works on the majority of contracts held by the Group are carried out on the basis of schedules agreed with the ordering party. Nevertheless, we are aware of the fact that the expansion of the existing epidemic and further increase in cases of infections may negatively affect the operational activity of the Group – points out Grzegorz Grabowski, the President of TORPOL S.A., who, despite the uncertain situation related to the pandemic, remains cautiously optimistic about the future.
– The current portfolio of the Group is approx. PLN 2 billion. We are still very active in most of the proceedings announced on the market for modernization and revitalization of railroad infrastructure and stations, but also tramway and civil engineering facilities. In the nearest future, we want to supplement our portfolio of orders to the level of PLN 2.5-3.0 billion net. We hope that, according to the declarations of the railroad infrastructure manager PKP PLK S.A., projects worth several billion zlotys are already prepared for announcement next year, from the EU perspective of 2021-2027, and many others are already being prepared. For the Company, but also for the whole market of contractors, it is extremely important to smoothly move to the implementation of tasks from a new perspective. We are well prepared to carry out such a portfolio of orders – we have very well-prepared engineering and technical staff and areas of organizational and legal support, machine facilities and financial potential, which makes Torpol Capital Group one of the leading contractors on the Polish market – emphasizes the President of TORPOL.
The company has also actively participated in the fight against the coronavirus. As part of social solidarity and corporate responsibility, TORPOL S.A. made cash donations of the total amount of PLN 500 thousand to the Józef Struś Multi-Specialist Municipal Hospital in Poznań, and decided to provide financial support in the amount of further PLN 350 thousand to the hospitals dedicated to fight Covid 19, as implemented jointly within the Capital Group of Towarzystwo Finansowe Silesia.
At the stand-alone level, TORPOL S.A. generated PLN 946.3 million revenues from sales after the third quarter of 2020, the company’s EBIT amounted to PLN 36.0 million, while net profit amounted to PLN 25.6 million.