At yesterday's meeting the Impregilo S.p.A. Board of Directors has examined and approved the half-year report to 30 June 2005. The highlights are:
- Consolidated net loss of 328.5 million after restructuring involves recognition of non-recurring items totalling 345.7 million in the first half.
- Financial position re-balanced, with a debt/equity ratio of 1.42 at 30 June 2005 against 5.54 at 31 December 2004 (reclassified for IAS).
- Value of production 1,206.1 million (1,473.5 million in H1 2004).
- "Engineering & Construction" contracting backlog of 6 billion.
The first half of 2005 closed with a consolidated operating loss and a consolidated net loss of, respectively, 251.9 million (operating profit of 86.5 million for the half year to 30 June 2004) and 328.5 million (a net profit of 24.3 million for the half year to 30 June 2004), after the restructuring and new events/developments required the Group to recognise sizeable write-downs and provisions totalling 345.7 million during the half year (318.9 million at operating profit level).
By its nature, the loss is related to a significant extent to items without a financial impact and/or non-recurring items; in view of this and considering the recent share capital increase, the loss is amply covered by the Group's new equity structure; equally, it is linked to a significant improvement in the Group's financial and equity ratios, notably the debt-equity ratio, which improved from 5.54 at 31 December 2004 to 1.42 at 30 June 2005 (2004 values reclassified in compliance with IAS policies to permit comparison with 2005).
Consequently, the Impregilo Group yesterday confirmed the financial and profitability targets and the core business growth targets announced over the last few months.
The key consolidated results for the half year were as follows:
- value of production was 1,206 million, against 1,473 million in the year-earlier period;
- operating loss of 251.9 million (a profit of 86.5 million in the first half of 2004); this loss arose from non-recurring provisions and write-downs of 318.9 million, without which the Group would have reported operating profit of 67 million;
- a net loss of 328.5 million compared with net profit of 24.3 in the year-earlier first half; the net result includes non-recurring provisions and write-downs totalling 345.7 million, without which the Group would have reported a net profit of 17.2 million;
- the net financial position stood at 653.9 million, from 1,161.5 million at 31 December 2004. This significant change was largely due to the portion of the share capital increase implemented at 30 June 2005 (570.7 million);
- shareholders' equity rose to 461 million (211.7 million at 31 December 2004) mainly as a result of recognition of the share capital increase less the loss for the period;
- the contracting backlog in the "Engineering &Construction" area stood at approximately 6 billion (approximately 4.4 billion for the "Infrastructures" business unit and approximately 1.6 billion for Fisia/Fisia Babcock), plus approximately 0.3 billion for "Building & Services".
Significant post balance sheet events
Two positive events took place after close of the first half, relating to initiatives begun in previous periods: the outcome of the bidding for the sale of the equity investment in the Costa Nera Norte motorway concession in Chile, and the finalisation of an agreement for the sale of a property in the Melchiorre Gioia area of Milan.
Additionally, a settlement was reached on the dispute with Pakistan's Water and Power Development Authority regarding the construction of the Ghazi Barotha hydroelectric plant. The settlement brought Impregilo proceeds totalling approximately $60.9 million, for a future positive impact on consolidated income estimated at approximately 15 million.
On 21 September 2005 Impregilo finalised the sale to Gemina S.p.A. of its equity investment in Leonardo S.r.l for 62.1 million, for a future positive impact on consolidated inc
