Stefanutti Stocks has reported an improvement in its contract revenue and operating profit from continuing operations to R7.1 billion (restated February 2023: R6.1 billion) and R210 million (restated February 2023: R101 million) respectively for FY2024 with its overall cash position increasing to R755 million (February 2023: R561 million).
Earnings per share for total operations recorded a profit of 9.50 cents (February 2023: 8.72 cents) with headline earnings per share a loss of 55.73 cents (February 2023: 38.73 cents). The group’s current order book is R8.4 billion (February 2023: R7.4 billion).
In late March 2024, the Group reached an agreement with its lenders to extend the capital repayment profile of the loan as well as its duration to the 30th of June 2025. Since March 2023 to date, capital repayments of R176 million have been made, reducing the loan to R984 million.
The disposal of SS Mozambique remains delayed, with the parties having extended the period for fulfilment or waiver of the conditions precedent to the 30th of June 2024. The group’s results have been restated, due to the reclassification of the Hyvec JV, which was established to execute a contract awarded to SS Mozambique to construct villas for a resort in Mauritius. To accommodate the exclusion of the Hyvec JV, the original transaction agreements will be amended without impacting on the purchase consideration.
Stefanutti’s inland region delivered a strong performance with contract revenue and operating profit increasing to R3.1 billion (February 2023: R2.3 billion) and R194 million (February 2023: R84 million respectively. Its civils discipline delivered a strong performance with its current order book R3.2 billion.
Its coastal region’s contract revenue from operations recorded R1.2 billion (February 2023: R1.4 billion) with an operating profit of R20 million (February 2023: R5 million). These results were negatively impacted by late contract awards and delayed commencement of projects. Its coastal region’s order book is R2.1 billion.
The Western Cape’s contract revenue is R1.1 billion (February 2023: R702 million) with an operating profit of R37 million (February 2023: R30 million), continuing to perform to expectation with a current order book of R1.4 billion.
The Africa region’s contract revenue is R1.6 billion (Restated February 2023: R1.6 billion) with a reduced operating profit of R33 million (Restated February 2023: R75 million). These results have been impacted by the Hyvec JV loss of R78 million. All other regions performed to expectation. With respect to the arbitration award in Zambia, as previously reported, settlement discussions remain ongoing on a without prejudice basis. Africa’s current order book is R1.7 billion.
“With respect to the Kusile power project, the group now expects that the Dispute Adjudication Board will issue its binding decision during the third quarter of 2024,” comments CEO of Stefanutti Stocks, Russell Crawford.
The Group continues to pursue numerous contractual claims and compensation on the Kusile power project. Since August 2021, it has secured payment of a combined total of R119 million for measured work and the Dispute Adjudication Board (DAB) rulings. Stefanutti and Eskom entered an ‘interim arrangement for the purposes of agreeing or determining the contractor’s claims and facilitating the dispute resolution process’ in February 2020 for all delay events up to the end of December 2019 which involves the appointment of independent experts to evaluate the causes, duration, and quantification of delays.
The total of all consolidated and updated claims submitted (excluding interest) amounts to R1 614 million. Stefanutti anticipates the DAB to issue its binding decision during Q3 2024.
