May 25th, 2022; 4:53PM
Electra Group has finished the first quarter of 2022 with an increase of approximately 56 million Israeli shekels in net profit¬¬¬¬¬¬¬ – 11.8% more than the same quarter in 2021 – and with improved outcomes for all five sectors in which the group operates: construction and infrastructure projects in Israel; construction and infrastructure projects abroad; operating, services, and maintenance; development and construction of planned real-estate; and franchising.
Electra’s outcomes in the recent quarter also include the outcomes of the transport company Electra Afikim, which acquisition was completed on April 1st, 2021. With this acquisition, Electra entered the sector of franchising and operating in the field of public transportation and transport. These also include the outcomes of Egged Transportation Ltd., which acquisition through Electra Afikim was completed by the end of August 2021.
In this quarter, Electra’s revenues have increased by 29.6% to approximately 2.6 billion shekels, compared to approximately 2 billion shekels in the same quarter last year. The revenues are attributed to the merger with Electra Afikim, which were not included in the parallel period, as well as to the increase in revenues of the planned real-estate sector due to the rise in the number of projects, the growth in the sector of projects for construction and infrastructure in Israel, and the growth in the operating, service, and maintenance sector.
In projects, the revenues in the sector of construction and infrastructure projects in Israel have grown by approximately 13.7% to 1.25 billion shekels compared to the same quarter last year. This growth mainly results from the growth in the scope of execution in the field of primary contracting for construction. The operating profit has decreased by 6.5% and amounted to 25.7 million shekels. In the sector of construction and infrastructure projects abroad, there was a 10.4% increase in revenues, which amounted to approximately 345.9 million shekels, compared to approximately 313.3 million shekels in the same quarter in 2021. This sector has suffered an operating loss of approximately 9.8 million shekels in this quarter compared to the operating profit of 9.7 million shekels in the same quarter last year. The change in profit mainly resulted from the decrease in the profits of the subsidiary companies in the United States in light of the COVID-19 pandemic.
In the operating, services, and maintenance sector, revenues have increased in this period by approximately 28% to about 639.2 million shekels, and the growth resulted from the merger with Electra Afikim and from the increase in profits in a number of activities in this sector.
In the sector of development and construction of planned real estate, revenues have increased by 43.1% to approximately 171.4 million shekels; the growth mainly results from the growth in the scope of the projects that the group executes in the residential real estate field. The operating profit in this sector has skyrocketed by 181% to approximately 23.2 million shekels, mainly thanks to the growth in the scope of residential real-estate projects. In the franchising sector, the company had a significant increase in revenues for this quarter which amounts to approximately 252.6 million shekels, in comparison to approximately 35.1 million shekels in the same quarter last year. The company attributes this growth to Electra Afikim’s outcomes.
Among the significant events that took place during the report’s period is the signing of a franchising agreement between TMT, 40.05% of which is held by Electra, and NTA for the funding, planning, construction, and maintenance of the Green Line of the light rail in Tel-Aviv, after it won the tender in January this year. The project is estimated at 9 billion shekels and the franchising period is of 25 years.
Itamar Deutscher, the CEO of the group: “We continue to enjoy the positive influence of the public transportation field, which we entered last year, and which integrates well into the company’s life-cycle strategy. Accordingly, we operate to extend Electra’s activity in this field in the future.”