Mostostal Plock prepares for poorer year

2010-03-12

Mostostal Plock, a subsidiary of Mostostal Warszawa, generated revenues of PLN 161.1m (€41.3m) and a net profit of PLN 20.5m (€5.3m) last year. However, the company's board expects a slight drop in its results in 2010.
Last year the company earned the majority of its revenues from construction-assembly production (94%) and from the production of equipment and structures (3.1%). Its most expensive contracts concerned the construction of installations for the company Anwil for PLN 36.2m (€9.3m) and the construction and assembly of a paraxylene unit for the concern PKN Orlen for PLN 28.6m (€7.3m). In addition, a one-off factor that boosted its results last year was its successful law suit against the company Bilfinger Berger Polska, as a result of which Mostostal was awarded the sum of PLN 5.6m (€1.4m).
In the opinion of the company's senior management, it will be difficult to achieve revenues similar to last year's figure on account of a predicted slowdown in investment activity, stiffening competition, changes in currency rates and the risk of a rise in prices of construction services and materials.