Commentary on results of Stalexport Autostrady Group for 2011

The dynamics of toll revenues, a negative one-off event related to the historical VAT receivables and financial activities had the greatest impact on the Group's financial results in 2011.

Last year the average daily traffic (ADT) on the toll section of A4 motorway increased by 2% compared to 2010, and the value of toll revenues increased by 9% in the same period. The different dynamics of both parameters resulted from the abolition of vignettes and the fact that all vehicles using concession section of motorway were obliged to pay the real tolls. 

The decision of tax authorities had the negative impact on financial results. As a consequence of this decision the holding company recognized an allowance of PLN 6.9 million for tax receivables. This allowance burdened the financial results of the Group in 1Q2011. 

Despite the necessity to recognize the allowance for tax receivables, the operating profit of our Group is higher by 2% than that recorded a year earlier – says Mieczysław Skołożyński, Vice-President and CFO in Stalexport Autostrady. It was possible i.a. due to strict monitoring of the current operation costs.  

Analyzing the results of the Group in 2011 it should be noted that the net financial costs amounted to PLN 47.5 million compared to PLN 42.2 million a year earlier. The difference mainly resulted from the changes in estimates of the amount of future construction works (higher discount of provisions), changes in market interest rates (higher loss on derivative transactions and higher discount of provisions), the overall situation on financial markets (lower efficiency of resources invested through investment funds) and borrowing in 3Q2010 of the last tranche of the project loan for the execution of the investments on the concession section of A4 motorway (increase of interests). The activity of the Group resulted in consolidated net profit of PLN 10.5 million, which was over 27% lower than a year earlier (PLN 14.5 million). 

Full separate and consolidated financial statements of Stalexport Autostrady for 2011 you can find by clicking here.

Presentation on 2011 financial results and perspectives of Stalexport Autostrady Group you will find by clicking here.