Stefanutti Stocks has published its results for the six months ended August 2023, reporting an improvement in its contract revenue and operating profit from continuing operations to R3.3 billion (August 2022: R2.9 billion) and R69 million (August 2022: R54 million) respectively, with the group’s overall cash position up from R561 million at yearend to R687 million.
CEO, Russell Crawford, says that the group continues to deliver a satisfactory performance and it is focused on the completion of outstanding items in its restructuring plan which includes the sale of non-core assets, underutilised plant, and equipment, and identified operations.
“The restructuring plan also aims to ensure a favourable outcome from contractual claims and compensation events on the Kusile power project, the closing-out of all legacy arbitration matters and evaluating the group’s capital structure.”
“With respect to the Kusile power project, the group envisages that the Dispute Adjudication Board (DAB) will issue its binding decision during the first half of 2024.”
He added that the disposal of SS Mozambique has unfortunately been delayed. “The completion of the transaction is subject to the fulfilment or waiver of certain conditions precedent, of which one remains outstanding.”
With regards to the mechanical project termination arbitration award and the disposal of Al Tayer Stocks LLC, a total of R106 million and R59 million respectively have been received from March 2023 to date.
“Capital repayments of R51 million and R43 million were made in May 2023 and October 2023 respectively, reducing the loan to R1 066 million.”
In respect of the trading environment, Crawford said that macro-economic conditions remain challenging across all regions. From an industry perspective, the group continues to be negatively affected by disruptive and unlawful activities by certain communities and informal business forums in South Africa.
Earnings before interest, tax, depreciation, and amortisation (EBITDA) improved from R74 million to R97 million, due to improved operating performance and a reduction in restructuring costs.
Earnings and headline earnings per share for total operations is a loss of 1.21 cents (Aug 2022: 5.53 cents earnings per share) and 22.41 cents per share (Aug 2022: 25.02 cents loss per share) respectively.
The group’s order book is currently R6.5 billion, of which R1.2 billion arises from work beyond South Africa’s borders.
