To put things into perspective, the deals make up for 6% of the company’s 2018 operating consolidated revenues. Although contracts have a multi-year duration, in our view an increase in contract backlog further fosters the stability and growth prospects of the company.
AD Plastik published an announcement stating that they have concluded new deals for the European market, including also the first deal for the Hungarian market since the acquisition of the company Tisza Automotive.
The value of the deals amounts to EUR 10.2m which, to put things into perspective, makes up for 6% of the company’s 2018 operating consolidated revenues.
Of that, deal on production of radar brackets for the vehicle Renault Traffic has been concluded with the total project value of EUR 1.5m. The start production is planned in 2020 with a projected duration of 7 years. Next, deals on the production of light housing have also been concluded with the customer Hella for the vehicles Nissan Navara and Volvo V40 with a value of EUR 5.1m. The start of production is planned in 2019 with a projected duration of 3 years.
Finally, deals for the vehicles Suzuki Vitara and S Cross, Audi A3 and Audi A3 CC and BMW 3 were agreed for the Hungarian market. The value of the deals amounts to EUR 3.6m.
Although contracts have a multi-year duration, in our view an increase in contract backlog further fosters the stability and growth prospects of the company.
ERNT signed a contract for the implementation of broadband optical network access in rural areas in Istria and Primorje- Gorski Kotar County.
Ericsson Nikola Tesla published a document in which they state that they have signed a contract with RUNE Crow for the implementation of broadband optical network access in rural areas in Istria and Primorje- Gorski Kotar County. Note that the deal was concluded for an undisclosed amount.
Rural Network Project (RUNE) is the first and currently the only international project at the European level which connects the territory of several member countries by a unique cross border optical network. In order to achieve the goals of Digital Agenda for Europe 2020, RUNE will help local authorities with the construction of the network in rural areas, which are currently not covered by optical infrastructure and where the existing Internet service providers have no commercial interest.
The project is financed by Connecting Europe Broadband Fund (CEBF), as the first investment platform for the support of broadband infrastructure within the European Fund for Strategic Investment (EFSI).
The company also states that this will contribute to the liberalization of the electronic communication service market and that this guarantees all operators an equal approach to end users under equal conditions.
To read about Ericsson Nikola Tesla’s 2018 results click here.
In 2019, the company expects to record an increase in operating revenues of 9.3% YoY, a decrease in EBIT of 17% and a decrease in net income of 15%.
As Nuclearelectrica proposed their revenue and cost budget for 2019, we are bringing you some key takes from it. According to the proposed budget, revenues are predicted to increase by 9.3% YoY, amounting to RON 2.4bn. Meanwhile, total revenues are expected to increase by 8.2%.
The level of the revenues is influenced by the provisions of GEO 114/2018 regarding the regulated price of electricity. Therefore, according to the ANRE resolution no. 326/25.02.2019, Nuclearelectrica must sell in 2019 on the regulated market a quantity of electricity of 1,376,963 MWh, at the regulated price of 188.22 RON/MWh (without Tg). This is RON 37 lower than the average weighted price of sale, which the company shall obtain in 2019 on the competition-based market (a price with a high degree of certainty, considering that on the date on which BVC 2019 was drafted, the company had a high percentage of electricity to deliver already contracted).
Therefore, the revenues unachieved due to the application of the provisions of GEO 114/2018 amount to RON 508.6m. Consequently, the percentage of increasing revenues from the budget proposal of 8.2% is distorted by these limitations. The real percentage of increasing the total revenues that could have been considered in the absence of GEO 114/2018 would have been 10.5%.
Operating Revenue (2015 – 2019e) (RON m)
Going further down the P&L, operating expenses are forecast to increase by 17.8%, which would amount to RON 1.9bn. Meanwhile, total expenses are forecast to amount to RON 2bn.
The level of expenses is influenced by the provisions of GEO 114/2018 regarding the increase of the tax payable to ANRE to 0.1% to 2% applicable on the turnover. The increase in the percentage causes additional expenses of RON 404.7m. Consequently, EBIT is expected to decrease by 17%, amounting to RON 445.6m
Besides that, the company estimates an increase in the financial expenses of RON 197.3m.
As a result of everything mentioned above, Nuclearelectrica expects to observe a decrease in net income of 15%, amounting to RON 350m