Comment on the results of Mostostal Płock S.A. for 2020
The year 2020, due to its unpredictability caused by the coronavirus pandemic, posed a challenge for the construction industry. However, Mostostal Płock S.A. successfully overcame the difficulties encountered by making optimal use of its organisational, human resources, technical and financial potential.
In 2020, Mostostal Płock S.A. generated sales revenue of PLN 96,829 thousand and earned a gross profit of PLN 5,747 thousand (PLN 5,272 thousand in 2019). The profit on sales amounted to PLN 7,573 thousand (PLN 6,582 thousand in 2019), the cash position of the Company at the end of 2020 remained at the level of over PLN 9 million, which, combined with the strong production potential, gives promising perspectives for the coming years. Employment remains at the level of around 300 employees, as in 2019.
The value of Mostostal Płock S.A.'s order portfolio at the end of 2020 was PLN 118 million, which in the following year ensures revenues at a level not lower than last year.
The active, and at the same time prudent, bidding policy made it possible to win contracts in the Oil&Gas area in 2020, with a total value of PLN 178 million (the value of works allocated to Mostostal Płock S.A. amounts to PLN 89 million).
The challenge for the Company for the next year will be to maintain the lack of impact of the state of the pandemic caused by SARS-CoV-2 on the achieved results, by constantly monitoring its impact on current operations and taking appropriate action. In order to reduce this risk, Mostostal Płock S.A., as a company of Mostostal Warszawa Group, has implemented instructions on how to proceed in case of risks of delays or increased costs.
In our opinion, it is possible that the effects of the pandemic will have a further impact on the number of tenders announced and awarded in 2021, as well as on the company's performance, financial and economic situation. The experience acquired and the company's adaptability confirmed in the past year allow us to be optimistic about the resilience of our structures to the unpredictability of the situation.
Mostostal Płock S.A.'s objective for the coming years is to maintain a level of contracting adequate to the company's potential and to modernise its production assets.