Spain Brazil Russia France Germany China Korea Japan

Artificial Intelligence driven Marketing Communications

Nov 29, 2019 5:36 AM ET

Shikun & Binui Reports Net Profit of NIS 426 Million in the First Nine Months of 2019


Shikun & Binui Reports Net Profit of NIS 426 Million in the First Nine Months of 2019

iCrowd Newswire - Nov 29, 2019

AIRPORT CITY, Israel— Shikun & Binui Ltd. (TASE: SKBN.TA), a global construction and infrastructure company headquartered in Israel, today reported its financial results for the third quarter and first nine months of 2019, ended September 30, 2019.

FINANCIAL HIGHLIGHTS OF THE FIRST NINE MONTHS OF 2019

REAL ESTATE ACTIVITIES

In the first nine months of 2019, housing sales totaled 1,392 housing units (in 100% terms), amounting to NIS 1.5 billion, of which 806 housing units were in Israel and 586 housing units were in Europe.

Apartment deliveries were 1,347 (in 100% terms) of which 586 were housing units in Israel and 761 were housing units in Europe.

Additional Data on Company’s Sale of Apartments (signed contracts) during Reporting Period:

 

Data Regarding Delivery of Apartments to Customers during Reporting Period:

 

Israel Real Estate: Significant increase in the volume of transactions signed during the first nine months of 2019 in the Or Yam project

RED International Real Estate: Significant Increase in Income and Profit Following delivery of 761 Housing during the nine month reporting period

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

The Company completed four transactions to sell holdings amounting to 30% of ADO Group shares for NIS 720 million, following which it recorded a pre-tax profit of NIS 476 million, as well as pre-tax profit from a revaluation of the remaining balance of the Company’s investment in ADO Group (7.5%) amounting to NIS 143 million.

PROJECT CONTRACTING

Solel Builder: Significant Volume of Wins for New Projects since Beginning of 2019

SBI International Infrastructure and Construction (excluding the United States): Significant improvement in profitability

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

PROJECTS AND INCOME GENERATING ASSETS

Start of Operation of the Ashalim Mega Project

In April, all approvals were required to operate the Ashalim project. The project includes the total supply of 121 megawatts of electricity, for an operating period ending in 2043. The company’s share of the franchisee and operator is 50%.

Tze’elim Photovoltaic Project

In October 2019, all required approvals were obtained to operate the Tze’elim project, a photovoltaic power plant with an installed capacity of 120 MW.

The Company estimates that the gross receipts from electricity sales generated by the facility will amount to approximately NIS 75 million per year and will be spread over an operating period of 20 years*.

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*.

Sale of Genari 2

In June 2019, 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.

Efficiencies

Management continued implementing steps to reduce expenses across the Group.

* Forward-looking information as defined in the Securities Law 1968, which relates to a future event or matter, the materialization of which is uncertain and not under the control of the Company alone. The information is based on estimates and forecasts as of this date, which may also not materialize or otherwise materialize due to undue delays, new information to be received, or changes that will apply to the assumptions of estimates and forecasts and /or as a result of a variety of other operational and logistical factors.

INVESTORS CONFERENCE CALL

Due to the US thanksgiving holiday, Shikun & Binui will not be hosting a conference call in English at this time.

International investors wishing to discuss the results with management are welcome to contact Shikun & Binui’s international investor relations team to schedule a call with management.

The Company expects to again provide an international conference call in English following the release of fourth quarter and full year 2019 financial results, next year.

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.

Contact Information:

CONTACTS
Shikun & Binui
Investor Relations
Leon Vasilnitzky
Ehud Helft
+972(3)630-5894
GK Investor & Public Relations
leon_v@shikunbinui.com
+1-617-418-3096
shikunbinuni@gkir.com








Tags:    Wire Real Estate, Wire, Asia, English