Stefanutti Stocks has released its results for the six months ended August 2024, reporting contract revenue from continuing operations of R3.6 billion (restated August 2023: R3.5 billion) and an improved operating profit of R132 million (restated August 2023: R62 million).
Earnings before interest, tax, depreciation, and amortisation (EBITDA) improved to R166 million (restated August 2023: R90 million) due to its operating performance with a net profit after tax of R51 million (restated August 2023: loss of R12 million).
Russell Crawford, CEO of Stefanutti Stocks, says that the Group has reached an agreement with its lenders to extend the capital repayment profile of its loan as well as the duration to the 30th of June 2025. “Capital repayments of R13 million and R37 million were made in March 2024 and July 2024 respectively, reducing the loan to R947 million.”
With regards to the Kusile power project, Crawford says that the Group continues to pursue several contractual claims and compensation events on the project with the anticipation that the Dispute Adjudication Board will issue a binding decision in early 2025. Further, the completion of the disposal of SS-Construções (Moçambique) Limitada is subject to fulfilment or waiver of certain conditions precedent, which have been extended to the 31st of December 2024.
Stefanutti’s earnings per share for total operations recorded a profit of 1.71 cents (August 2023: a loss per share of 1.21 cents) with headline earnings per share also recording a profit of 13.23 cents (August 2023: a loss per share of 22.41 cents).
The Group’s current order book is R8.9 billion (restated August 2023: R7.2 billion) of which R1.5 billion (restated August 2023: R1.9 billion) arises from work outside of South Africa.
Its inland region reported contract revenue and an operating profit of R1.5 billion and R81 million respectively with the order book as at August 2024 R4.3 billion (August 2023: R3 billion).
The Group’s coastal region reflected an improved performance with a significant increase in both its revenue and operating profit to R1 billion (August 2023: R544 million) and R33 million (August 2023: R0.3 million) respectively. The coastal region’s order book as at August 2024 was R1.9 billion.
Its Western Cape contract revenue was R427 million with an operating profit of R31 million (August 2023: R15 million). The order book as at August 2024 was R1.6 billion (August 2023: R1 billion).
The Group’s African region’s contract revenue was R722 million with an operating profit of R37 million (restated August 2023: R22 million. Crawford says that the African region’s results had been negatively impacted by the recognition of a provision of R30 million due to additional resources required to reach contract completion for the Hyvec JV and difficult operating conditions in Botswana due to excess capacity in the sector. Africa’s order book as at August 2024 was R1.4 billion.
“With respect to the arbitration award relating to the Kalabo-Sikongo-Angola border gate road in the Western Province of Zambia, shareholders are advised that negotiations on a settlement agreement remain ongoing as reported in the February 2024 results. Due to the uncertainty relating to the timing and quantum of receipts, the award has not been recognised in the financial statements.”
Its Board resolved not to declare a dividend for the reporting period.
