Polish Construction Companies 2016 – Major Players, Key Growth Drivers and Development Prospects
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Polish construction companies 2016 – Major Players, Key Growth Drivers and Development Prospects Contents Introduction 5 Chapter 1. Financial analysis of the largest construction companies 7 1.1. List of the largest construction companies in Poland by revenue earned in 2015 8 1.2. List of the largest construction companies in Poland by operating income in 2015 10 1.3. List of the largest construction companies in Poland by net profit in 2015 12 1.4. Debt of the largest construction companies in 2015 15 1.5. Capital expenditure to sales ratio of the largest construction companies in 2015 16 1.6. Revenue of the largest construction companies by region and by type in 2015 18 1.7. 1.7. Market capitalization of the largest construction companies listed on the Warsaw Stock Exchange 26 Chapter 2. Prospects for development of construction companies in Poland 33 2.1. Introduction 34 2.2. Key growth drivers for the construction market in Poland 36 2.3. Bankruptcies in the construction sector 38 2.4. Employment in the construction sector 39 2.5. Development prospects for construction market segments in Poland 41 2.6. Market Perspective 58 2.7. Summary 61 Chapter 3. Profiles of the largest construction companies in Poland 64 Bibliography 113 Contact us 115 Polish construction companies 2016 | Major Players, Key Growth Drivers and Development Prospects Introduction Dear Sirs and Madams, The second section comprises an analysis of the prospects for the industry’s short-term and mid-term We have the pleasure to present the fourth report growth, a discussion of possible capital expenditure entitled Polish Construction Companies 2016 – Major in individual market segments, bankruptcy figures, Players, Key Growth Drivers and Development and employment trends in the sector. At the end Prospects, analysing the condition of fifteen largest of this section, a summary of the industry’s current construction companies in Poland, as measured by condition and the key growth drivers are presented revenues, and describing market prospects for growth. from the perspective of the largest Polish construction companies and key public investors, such as PKP Having analysed the financial data for 2015, we Polskie Linie Kolejowe S.A. and the Directorate observed further improvement in revenues and General for National Roads and Motorways. profitability of top players in the Polish construction market. The total revenues of all the fifteen largest In the final part of the report, we briefly examine the companies grew by PLN 3.1 billion, i.e. 11.3% compared characteristics of the business activity of the fifteen to the 2014 figures. The revenue growth translated into most important market players in 2015. higher operating profit and net profit of the top 15. At We include the most crucial information concerning the end of 2015, market capitalization of the fifteen the scope of their activities, ownership structures largest construction companies listed on the Warsaw and detailed financial data derived from their annual Stock Exchange and included in the ranking was financial statements. considerably higher than a year before. Our report has been prepared based on publically Undoubtedly, further growth in 2015 resulted from the available financial data or information provided directly general upturn in the Polish economy and completion by entities discussed in the report. of works and projects carried out under the previous EU financial framework. As in previous years, large We hope that you will find the report: Polish infrastructure projects in the road, railway and Construction Companies 2016 – Major Players, industrial Key Growth Drivers and Development Prospects construction sectors, in particular in the energy informative and that it will give you a better market, were key drivers of the industry. understanding of the current situation in the Polish construction market, including the opportunities Still, in 2016 the construction market saw a and challenges that lie ahead of sector investors and considerable slowdown. This results from postponing construction companies. key infrastructure projects carried out under the new financial perspective to 2017 and 2018. The slowdown As always, we highly encourage you to contribute your will be particularly visible in the market of contracts for insights and suggestions concerning any issues modernization of railroads. Undoubtedly, the major discussed in the report. rescheduling of key investment projects will impede sector growth in 2016 and entail an accumulation of construction works in the following years. The first part of our report presents a financial analysis of companies operating on the Polish construction sector, based on fifteen entities that have managed to build the strongest market position. It examines their revenues, sales profits, net profits, debt, geographical and revenue structure. 5 Polish construction companies 2016 | Major Players, Key Growth Drivers and Development Prospects 6 Polish construction companies 2016 | Major Players, Key Growth Drivers and Development Prospects Chapter 1. Financial analysis of the largest construction companies 7 Polish construction companies 2016 | Major Players, Key Growth Drivers and Development Prospects 1.1. List of the largest construction Ferrovial, with revenue totalling PLN 5.1 by PLN 463 million and PLN 446 million, companies in Poland by revenue billion, which means a 3,7% rise year-on- respectively. The most exponential increase earned in 2015 year. The Austrian Strabag is the third in percentage terms (by almost 60%) was In 2015, the combined revenue of the fifteen largest construction company in Poland, reported by Torpol Group. Consequently, largest construction companies totalled PLN whose revenue increased by 22% vs. it went up from the 15th place in 2014 31.1 billion, up by PLN 3.1 billion (11.3%) vs. 2014, reaching PLN 3.8 billion. It should to 12th position a year later. Apart from 2014. The largest players did not change be emphasised that the Strabag Group Strabag Group, a strong increase in revenue, compared to the preceding year. This year’s reported the most considerable increase exceeding 30%, was also seen by companies list is again topped by Skanska Group, whose in its revenue (PLN 693 million) in nominal that are new to the ranking, i.e. Mota - Engil revenue reached PLN 5.5 billion, up by 8.4%. terms among all the ranked companies. S.A. and Hochtief Polska S.A. It is followed directly by Budimex Group, Apart from Strabag Group, the revenue of controlled by the Spanish company Torpol Group and Polimex Mostostal Group also rose substantially in value terms, Table 1.1: List of the largest construction companies in Poland by revenue (in PLN ‘000) Revenue Revenue Change in nominal Change in No. Company name 2015 2014 terms percentage terms 1 Skanska Group 5 509 363 5 081 675 427 688 8.4% 2 Budimex Group 5 133 994 4 949 939 184 055 3.7% 3 Strabag Group** 3 835 846 3 142 849 692 997 22.0% 4 Polimex-Mostostal Group 2 548 575 2 102 197 446 378 21.2% 5 PBG Group 1 798 815 1 530 248 268 567 17.6% 6 Erbud Group 1 763 282 1 692 055 71 227 4.2% 7 Trakcja Group 1 329 180 1 601 674 -272 494 -17.0% 8 PORR Group*** 1 293 120 1 045 019 248 101 23.7% 9 Mostostal Warszawa Group* 1 275 431 1 509 524 -234 093 -15.5% 10 Unibep Group 1 242 860 1 079 703 163 157 15.1% 11 Elektrobudowa Group 1 242 830 1 108 316 134 514 12.1% 12 Torpol Group* 1 238 241 775 399 462 842 59.7% 13 Warbud S.A. 1 106 860 1 049 886 56 974 5.4% 14 Mota - Engil Central Europe S.A. 949 576 658 133 291 443 44.3% 15 Hochtief Polska S.A. 788 488 579 348 209 140 36.1% Total 31 056 460 27 905 965 3 150 495 11.3% average 2 070 431 1 860 398 210 033 11.3% Increase Decrease No change Note: This analysis does not take account of the revenue generated by foreign branches of construction companies operating in Poland or that of special purpose vehicles established to carry out specific projects as part of consortia, as their revenue is included in the consolidated revenue of the consortium members Source: Financial statements for 2014-2015 8 Polish construction companies 2016 | Major Players, Key Growth Drivers and Development Prospects In 2015, the most considerable drop in report a decrease in revenue for two revenue in nominal and percentage terms consecutive years. was reported by the Trakcja Group (PLN 272 million and 17% respectively). An equally Considering the last five years, the high level large percentage drop was seen by the of revenue in 2011 was the consequence Mostostal Warszawa Group (15.5% year-on- of major infrastructure projects carried year). out in Poland before EURO 2012 and the accumulation of investments in the first In 2015, the number of companies whose financial perspective. Increases seen in revenue increased did not change as 2014 and 2015 were attributable to the compared to the preceding year (eleven). improvement of the overall economic As many as 13 companies (eleven in 2014) conditions in Poland and worldwide as well recorded growth in 2015. The Mostostal as the completion of work relating to projects Warszawa Group was the only entity to implemented in the first financial perspective (2007 – 2013). Diagram 1.1: Change in average revenue of the ranked companies between 2011 and 2015 (in PLN ‘000) 2818 580 2266 448 2070 431 1 900 183 1 735 847 2011 2012 2013 2014 2015 Based on previous editions of reports presenting the largest construction companies in Poland (Deloitte reports: Polish Construction Companies 2011 - 2015) Source: Financial statements 2011-2015 9 Polish construction companies 2016 | Major Players, Key Growth Drivers and Development Prospects 1.2.