Israel Shipbuilding Industries – Results for the 2021-3 quarter

by time news

In the first nine months of 2021, the company’s revenues grew by 21.3% to NIS 674.8 million and net profit increased by 20.1% to NIS 71.6 million.

The company’s backlog in the shipyard sector has increased and stands at approximately NIS 877 million close to the date of publication of the report.

Zvika Schechterman, CEO of Israel Shipbuilding Industries: “We conclude the third quarter with growth and a sharp increase of over 40% in net profit, results that reflect the steps we have taken to streamline operations and maximize operational flexibility, combined with the surge in maritime transport. Our activity diversification strategy proves itself .

In the cement sector, we worked to increase our holdings in the two companies we control, Cement and Isco, a move that will allow us to enjoy a larger share of the cement operating profits, which is a significant growth engine for the company, while the cement industry enjoys increased demand and accelerated growth.

In the port activity sector, we continue to present efficiency at a global standard, which is reflected in the volume of cargo unloading per ton in relation to the size of the port, and we continue to operate in a ’24/7 format, with maximum occupancy, to help the economy cope with congestion at Israeli ports. This was reflected in both an increase in the volume of activity and an increase in profitability.

World transport prices continue to provide a strong boost to our activity in the field of maritime transport, in which we currently operate a fleet that includes 9 ships, including a ship with a capacity of about 37.5 thousand tons. In addition, we own 4 ships dedicated to transporting cement, of which 3 ships are used by the subsidiary Cement and another ship, which operates to transport cement for third parties.

In the shipyard sector, we continued to increase our order backlog, by receiving new orders from the Ministry of Defense and from customers in the international markets. The backlog has increased to over NIS 800 million.

These days we continue to develop the company’s growth engines, including the construction of the silo facility for receiving nuclear cargo, entry into the bitumen and gypsum areas, as well as our participation in the tender for the privatization of Haifa Port together with our partner DP WORLD from Dubai. At the same time, we are working in all sectors of activity in order to locate new deals to establish the company’s continued growth. “

Israel Shipyards Industries Company Ltd. Today reported its results for the third quarter and the first nine months of 2021. The company first issued its shares on the Tel Aviv Stock Exchange in September 2020.

Highlights of the results for the third quarter of 2021:

Revenues in the quarter increased by 13.8% to NIS 234.6 million, compared with NIS 206.1 million in the corresponding quarter last year.

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In the shipyard sectorRevenues increased by 10.5% to NIS 52.3 million, compared with NIS 47.3 million in the corresponding period last year. The increase in revenues from the shipyard segment is due to an increase in the volume of projects under construction compared to the corresponding period last year. EBITDA in the segment amounted to NIS 8.2 million (approximately 15.6% of revenues), compared with approximately NIS 12.4 million (approximately 26% of revenues) in the corresponding quarter last year.

In the port sector Revenues increased by 13.5% to NIS 45.2 million, compared with NIS 39.8 million in the corresponding quarter last year. The increase in revenues is due to a change in the product mix and an increase in cargo unloading compared to the corresponding period last year. EBITDA in the segment increased to NIS 13.1 million (approximately 29.1% of revenues), compared with approximately NIS 11.1 million (approximately 27.8% of revenues) in the corresponding quarter last year.

In the cement sector Revenues rose to NIS 114.8 million in the quarter, compared with NIS 112.3 million in the corresponding quarter last year. The increase in turnover in the cement sector is due to an increase in the quantity sold compared to the corresponding quarter last year. EBITDA in the cement segment amounted to NIS 14.8 million (approximately 13% of revenues), compared with NIS 15.3 million in the corresponding quarter last year (approximately 13.6% of revenues). The decrease in profitability is due to an increase in the cost of the average raw material per ton as well as an increase in the cost of transportation, while the average selling price remains almost unchanged.

The company’s operating profit grew by 34.7% to NIS 33.2 million, compared with NIS 24.7 million in the corresponding quarter last year.

EBITDA in the quarter increased by 20.4% to NIS 46.5 million, compared with NIS 38.6 million in the corresponding quarter last year.

The company ended the third quarter of 2021 with an increase of 41.3% in net profit to NIS 26.2 million (NIS 23.8 million attributable to shareholders), compared to a net profit of NIS 18.5 million (NIS 16.4 million attributable to shareholders In the corresponding quarter last year.

The company’s shareholders’ equity, as of September 30, 2121, increased to NIS 801.1 million (of which NIS 768.8 million is attributed to shareholders).

The backlog of orders in the shipyard sector as of September 30, 2121 increased to NIS 824.4 million, compared with a backlog of NIS 262 million at the end of 2020. As of the publication of the report, the backlog of orders increased to NIS 867 million.

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Highlights of the results for the first nine months of 2021:

Total revenues in the first nine months of 2021 increased by 21.3% to NIS 674.8 million, compared with NIS 556.3 million in the corresponding period last year. The increase in revenue is due to an increase in the shipyard segment, mainly as a result of signing an agreement with a customer, an increase in the cement segment as a result of an increase in the quantity sold, an increase in the other segment and the port activity.

Operating profit increased by 15.6% to NIS 89.5 million, compared with NIS 77.5 million in the corresponding period last year.

EBITDA in the period increased by 8.6% to NIS 129.1 million, compared with NIS 118.9 million in the corresponding period last year.

Net income in the first nine months of 2021 increased by 20.1% to NIS 71.6 million (NIS 67.1 million attributed to shareholders), compared with NIS 59.6 million (NIS 52.7 million attributed to shareholders) in the corresponding period last year.

Main events during and after the report:

October 2021 The company reported that it has signed two agreements to purchase shares in two subsidiaries operating in the cement industry, with the company acquiring 25% of the shares of the Swiss company ISCO Trading SA, which coordinates the activity of trading cement products abroad, and the company will purchase the entire shares. The partner (100%) in PS – BMI, which owns 25% of the shares of Cement, a company that imports cement materials from abroad, transports cement in dedicated ships that it owns and manufactures cement products and products for the construction industry. Upon completion of the two agreements, the Company’s holding in the cement segment will increase, through increasing its holdings in ISCO and Cement, from 70.3% to 95.3%.

September 2021 The Israel Shipyards subsidiary has entered into an agreement with a government client in Africa to lease multi-purpose cruise ships and provide various services. The compensation that Israel Shipyards will receive for leasing the vessel and providing the services throughout the lease period, which is 5 years, will amount to approximately NIS 102 million. The vessels supplied will be purchased from a manufacturer in East Asia. The customer has the right to shorten the lease period For lease, insofar as he decides to purchase from the subsidiary ships of its production.

August 2021 The Israel Shipyards subsidiary has signed an agreement with the Ministry of Defense’s Purchasing Manager to plan the next Navy assault ship, to be called “Reshef” (intended to replace the Nirit ships in the Navy’s service) in the amount of NIS 43 million plus VAT. The deal will receive payments from Israel Shipyards according to milestones set in the order.The schedule planned for the completion of the planning is about 22 months.

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In July 2021 The subsidiary, Israel Shipyards, received a notification from the Purchasing Manager at the Ministry of Defense regarding the approval of an order for the purchase of four “Sheldag” high-speed security ships for NIS 96 million.

In June 2021 The Israel Shipyards subsidiary entered into an agreement for the production and supply of vessels, equipment and services to the country in Africa for approximately NIS 151 million. The company will provide the vessel by the end of 2023, when the consideration will be paid according to milestones when the next milestone will be paid in the first quarter of 2023 and after that the subsidiary will start completing the vessel. It should be noted that this is the completion of a transaction for which an initial amount of NIS 59 million (approximately $ 18 million) was received in the past, and therefore the said consideration includes this amount and the vessel has already been partially built and included in the company’s inventory.

May 2021 The company reported that it is expanding its fleet of ships and entering a new field of international cement transportation operations. A limited partnership, owned by a subsidiary and a subsidiary of the company, has signed an agreement to purchase a dedicated ship to transport cement cargo, with a carrying capacity of about 15,000 tons, for about $ 11 million. The transaction was completed during July 2021. The new ship is expected to be used in the near future to transport cement for third parties and is leased on a long-term lease to an unrelated third party, for a period of about one year, which can be extended for another period of one year. Following the acquisition, the company’s fleet numbers 13 ships.

May 2021 The Israel Shipyards subsidiary was selected by a company engaged in the oil and gas drilling industry to provide cleaning, painting, quality control, inspection and management services at the customer’s facilities for approximately NIS 22 million for a period of approximately 16 months. This is the first time that the company has won such a project in marine production facilities and expects that following the win, it will be able to expand its activities in the field of providing services in the heart of the sea. In July 2021, the company reported the signing of the agreements.

February 2021 The subsidiary has signed an agreement to purchase a cargo ship with a carrying capacity of approximately 37,500 tons in exchange for approximately $ 10.5 million. The transaction was completed in early June 2021.

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