Electra Ltd. – The stock responded with a decrease of about 4% to the quarterly reports

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In the first nine months of the year, Electra’s revenues grew by 14.9% to NIS 6.5 billion and net profit increased by 24% to NIS 171.7 million.

Accumulated group work Electra Rose to a peak of NIS 23.4 billion, compared with a backlog of NIS 16.9 billion at the end of 2020.

Itamar Deutscher, CEO of the Electra Group: “We conclude the first nine months of the year and the third quarter with growth in revenues and an increase in net profit, and with the continuation of the growth trend in the workforce, which currently stands at over NIS 23 billion, thanks to a series of significant projects won by the group.

The financial results illustrate the positive contribution of our entry into the field of public transportation, through the acquisition of Afikim and Egged Transport. This activity is an important and growing leg for us, and is in fact another tier in Electra’s life cycle strategy, giving us access to a new market with significant potential where Electra’s presence so far has been low.

At the same time, we continue our momentum of activity in the field of residential development, promoting the construction of thousands of housing units in a variety of projects throughout the country and working to establish the status of the Electra Residence brand as a leading brand in the Israeli housing market. The project in Ramat Gan, which we recently won, which is expected to contribute revenues of over NIS 1.3 billion in the coming years.

In the areas of national infrastructure, Electra is currently competing in a number of government tenders for the establishment of mega-projects, an area in which Electra is expressing its range of capabilities and benefits.

At the same time, we announced the sale of the balance of our holdings in the Gilboa power plant, and we are expected to post a significant profit upon completion of this transaction. “

Group Electra, Managed by Itamar Deutscher, Summarizes the third quarter of 2021. The results for the quarter include the results of Electra Afikim, whose acquisition was completed on April 1, 2021, and through which Electra entered into franchising activities and also operates in the field of public transportation and transportation. The results also include the results of Egged Transportation, whose acquisition through Electra Afikim was completed on August 31, 2021.

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Highlights of the results for the third quarter of 2021

The group’s revenues in the third quarter of 2021 increased by 13.9% to NIS 2.27 billion, compared to NIS 1.99 billion in the corresponding quarter last year.

Gross profit for the quarter increased by 7.5% to NIS 185.4 million, compared with NIS 172.5 million in the corresponding quarter in 2020.

The company ended the third quarter of 2021 with a net profit of NIS 53.2 million (NIS 46.9 million attributed to the company’s shareholders), an increase of 4.7% compared to NIS 50.8 million (NIS 37.7 million attributed to shareholders). Of the company) in the corresponding quarter last year.

EBITDA in the quarter grew by 21.3% to NIS 186.2 million, compared with NIS 153.4 million in the corresponding quarter last year.

Sector results:

Revenues in the construction and infrastructure projects segment in Israel amounted to NIS 1.02 billion in the third quarter, compared with NIS 1.08 billion in the corresponding quarter last year. Operating profit in the segment amounted to NIS 5.4 million in the quarter, compared with NIS 51.4 million in the corresponding quarter last year.

In the projects for buildings and infrastructure abroad segment, revenues in the quarter amounted to NIS 336 million, compared with NIS 345 million in the corresponding quarter last year. Operating profit in this segment amounted to NIS 2.6 million in the quarter, compared with NIS 13.5 million in the corresponding quarter last year.

In the operating, service and maintenance segment, revenues in the quarter increased by 21.7% to NIS 625.9 million, compared with NIS 514.4 million in the corresponding quarter last year. Operating profit in this segment increased by 34.2% to NIS 58.4 million, compared with NIS 43.5 million in the corresponding quarter last year. The increase was mainly due to the inclusion of Electra Afikim’s transportation activity, as well as activity in the field of corona testing.

In the development and construction real estate segment, revenues increased by 23% in the quarter to NIS 114.4 million, compared with NIS 93 million in the corresponding quarter last year. The increase is mainly due to an increase in the volume of residential real estate projects, in line with the pace of progress. Operating profit in this segment grew by 52.1% in the quarter to NIS 13.8 million, compared with operating profit of NIS 9.1 million last year.

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In the franchise segment, the company recorded a significant increase in revenue in the quarter to NIS 219.6 million, compared with NIS 24.2 million in the corresponding quarter last year. The company recorded an operating profit in this segment of approximately NIS 20.8 million, compared with approximately NIS 1.5 million in the corresponding quarter last year. The increase was mainly due to the inclusion of Electra Afikim’s public transportation activity, and the first registration of revenues in the Netanya District Government Campus project.

Below are the main results for the first nine months of 2021

Total revenues in the period increased by 14.9% to NIS 6.5 billion, compared with NIS 5.65 billion in the corresponding period last year. The increase in revenues is mainly due to the first consolidation of Electra Afikim, starting in the second quarter of the year, as well as an increase in the projects for buildings and infrastructure in Israel, projects for buildings and infrastructure abroad, development and construction of real estate in development, service and maintenance.

Gross profit in the period increased by 16.4% to NIS 555 million, compared with NIS 477 million in the corresponding period last year.

The company ended the first nine months of 2021 with a net profit of approximately NIS 171.7 million (approximately NIS 150.7 million attributed to the company’s shareholders), an increase of approximately 24% compared to approximately NIS 138.5 million (approximately NIS 109.5 million attributed to owners Shares of the company) in the corresponding period last year.

The company’s balance sheet, as of September 30, 2121, shows that the Group’s total liquid assets (cash and cash equivalents and marketable securities) amounted to approximately NIS 630 million.

The company’s capital, as of September 30, 2021, amounted to NIS 1.32 billion, of which NIS 1.21 billion is capital attributed to the company’s shareholders.

Electra’s backlog as of September 30, 2021, amounted to NIS 23.4 billion, compared with NIS 16.9 billion at the end of 2020.

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Additional events during and after the report:

In November 2021 The other shareholders in PSP Investments Ltd., which owns a 300MW Gilboa power plant operating with pumped storage technology, informed the company that they are seeking to exercise their right and acquire the full holdings of Electra at a rate of 25.5%. The transaction will be paid to the company in the amount of NIS 225-245 million, subject to consideration adjustments stipulated in the agreement. The agreement is subject to the fulfillment of a number of conditions precedent.

In June 2021 Electra reported that a subsidiary (wholly owned) signed its agreement to the terms of the Israel Land Authority for the allocation to the subsidiary of 8 plots in Ramat Gan (adjacent to Ramat Efal and Tel Hashomer), by virtue of an option trading agreement purchased by the subsidiary from Kfar Azar tenants. The subsidiary will purchase the land, in accordance with the approved master plan, on which the subsidiary is expected to build approximately 495 housing units. The cost of the land, which includes the payments to the Israel Land Authority, Kfar Azar and development costs, is approximately NIS 680 million. Construction is expected to begin during 2022. NIS 1.36 billion. The cost of sales is expected to be NIS 1.1 billion, and gross profit is expected to be NIS 260 million.

In May 2021 Electra reported that it entered into an agreement through its subsidiary Electra Afikim (51%) for the acquisition of full ownership in Egged Transport. The purchase cost amounted to NIS 139 million. On August 31, 2021, the transaction was completed.

In April 2021 Electra reported that it has completed the acquisition of 51% of the issued and paid-up share capital of Amnon Mesilot, a private-family company, which also includes the Afikim company it owns.

February 2021 The company reported that it had signed, through its subsidiary Electra Infrastructure, an agreement with Alumi for the planning and construction of the giant storage plant pumped at Menara Cliff for NIS 1.13 billion – after Alumi completed the financial closure.

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