Electra Ltd. concludes 2021 with continued growth. The revenue increased by ~16.3% to ~NIS 9 billion; net profit increased by ~25.4% to 227.2 million. In the fourth quarter of 2021, Electra recorded a 20% revenue growth to ~NIS 2.5 billion and ~30% in net profit to ~NIS 55.5 million.
The job increase for the Electra Group amounted to ~NIS 23.6 billion before the inclusion of the Green Line project of the Light Rail. The company’s board of directors has approved a semi-annual dividend of approximately NIS 40 million.
Itamar Deutscher, CEO of Electra group: “2021 was a strong year for Electra Ltd, showing improvements in all parameters and an extensive job increase that grew to approximately NIS 23.6 billion. Our numerous business deals yielded positive results throughout the year, following our venture into public transportation by acquiring Afikim and Egged Ta’avura. We value this matter for its immense business potential, which goes well with our company’s circle of life strategy.
We recently updated on several wins in significant infrastructure projects, most notably the Green Line project of the Light Rail, in collaboration with Dan Transportation and the Alstom International Group, totaling approximately NIS 9 billion. We have also won additional strategic tenders from Netivei Israel and Mekorot, and we are currently bidding on several critical tenders to be published by the various government ministries.
At the same time, we continue the momentum of activity in residential development as part of projects promoted by Electra, amounting to thousands of housing units throughout the country, and continue to work to establish the ‘Electra Residence’ brand as a leading brand in the residential market. “
The Electra Group, managed by Itamar Deutscher, concludes the fourth quarter and the year 2021 as a whole. The results include Electra Afikim, acquired on April 1, 2021, and through which Electra entered into franchising and operating activities in public transportation. The results also include Egged Ta’avora, obtained through Electra Afikim on August 31, 2021.
Below are the main results for 2021.
Total revenues increased by 16.3% to NIS 8.97 billion, compared with NIS 7.72 billion in 2020. Most of the increase in revenues was due to the first consolidation of Electra Afikim starting in the second quarter of 2021 and an increase in revenues from projects for buildings and infrastructure in Israel and operation, service, and maintenance. In addition, the increase was due to the first record of income from the Kiryat HaMemshala project in Netanya and Covid testing.
Gross profit for the period increased by 13.8% to NIS 739 million, compared with NIS 649 million in the previous year.
The company ended 2021 with a 25.4% increase in net profit to NIS 227.2 million (NIS 195.6 million attributed to the company’s shareholders), compared to NIS 181.2 million (NIS 149.6 million attributed to the company’s shareholders) in the previous year.
The company’s EBITDA in 2021 increased by 29% to NIS 718.9 million, compared to NIS 556.6 million in 2020.
Highlights of the results for the fourth quarter of 2021
The Group’s revenue in the fourth quarter of 2021 increased by 20.2% to NIS 2.48 billion, compared to NIS 2.06 billion in the corresponding quarter of 2020.
The gross margin for the quarter increased by 6.8% to NIS 183.7 million, compared with NIS 172 million in the corresponding quarter in 2020.
The company ended the fourth quarter of 2021 with a net profit of NIS 55.5 million (NIS 44.9 million attributed to the company’s shareholders), an increase of 30% compared to NIS 42.7 million (NIS 40.2 million attributed to company’s shareholders) in the corresponding quarter of 2020.
The EBITDA in the fourth quarter of 2021 grew by 34.5% to NIS 184.3 million, compared with NIS 137 million in the corresponding quarter last year.
Additional data:
As of December 31, 2121, the company’s balance sheet shows that the Group’s total liquid assets (cash and cash equivalents and marketable securities) amounted to approximately NIS 681 million.
As of December 31, 2021, the company’s capital amounted to NIS 1.34 billion, of which NIS 1.22 billion is capital attributed to the company’s shareholders.
Electra’s backlog as of December 31, 2021, amounted to approximately NIS 23.6 billion, compared to about NIS 16.9 billion at the end of 2020, before the inclusion of the Green Line for the Light Rail.
The company’s board of directors has approved a semi-annual dividend of approximately NIS 40 million.
Additional events during and after the report:
In January 2022, the company announced that TMT, which is owned by Electra at a rate of 40.05%, along with Dan Ta’avora and the International Alstom Group, won a tender from NTA for the financing, and planning, construction, and maintenance of the Tel Aviv Light Rail. The total scope of the project is estimated at NIS 9 billion, with the concession period being 25 years, which includes five years of construction and 20 years of maintenance. This amount also provides construction grants according to milestones set beforehand.
In January 2022, Electra won an exclusive tender from Netivei Israel to convert LED lighting fixtures on all its Israeli roads. Electra will provide said services for five years, with Netivei Israel having options to extend the contract for five more. The total financial scope of the project over the entire period, including extension, is approximately NIS 600 million.
In January 2022, the subsidiary Electra Infrastructure (85%) was selected as the first winning bid out of two in a tender from the Mekorot water company to plan and conduct water well drilling, including installing pumping stations throughout the country. The expected return for Electra Infrastructure’s share in the project is approximately NIS 300 million. The contract scope is for four and a half years, and work will begin in the first half of 2022.
In November 2021, the other shareholders in PSP Investments Ltd., which owns a 300MW power station in Gilboa that operates with pumped storage technology, informed the company that they seek to exercise their right and acquire the total holdings of Electra at a rate of 25.5%. On the transaction date, the company will be paid an amount of approximately NIS 225-245 million, according to return adjustments outlined in the agreement. Stipulation in the deal includes several preconditions. The company expects to receive a cash flow of approximately NIS 225 million, gross before tax, at the transaction date.
In May 2021, Electra reported that it had agreed through the subsidiary Electra Afikim (51%) to acquire full ownership of Egged Ta’avora. The purchase cost amounted to NIS 139 million. On August 31, 2021, Electra completed the sale.
In April 2021, Electra entered the field of transportation, acquiring 51% of the issued and paid-up share capital of Amnon Mesilot, a private family-owned company that also owns Afikim.