One contender for Iraqi contracts
"At the beginning of April, Budimex shares rose in value, because it's considered the only company listed on the Warsaw Stock Exchange (WSE), which is likely to obtain contracts in Iraq," says Bartosz Ostafinski of Beskidzki Dom Maklerski
Other firms might have problems obtaining such work even
though theoretically they are able to execute them. Mostostal Zabrze, for
example, could manage the jobs from an organisational and technological point of
view, but it lacks an appropriate capital base. "Mostostal Zabrze is
struggling with enormous problems on the domestic market," the BDM analyst
reminds us.
Construction companies listed on the WSE are still having a hard time.
"The execeptions are the firms who have strong branch investors and are
being restructured," states Ostafinski. "2003 will be a vital period
on the market - weak firms will go bankrupt or be forced to limit their scope of
activity," he adds.
Construction companies will soon be announcing their financial results for the
first quarter. "Nobody expects any drastic improvement," our analyst
tells us. In his opinion, the revenue of Budimex, the biggest construction
company listed on the WSE, will be comparable to that achieved in the first
quarter of the previous year: PLN 99.41 mln.
"The results of operational activity will oscillate around zero and
according to my forecast the net loss will amount to approximately PLN 8 mln,"
says Ostafinski.
He also mentions Mostostal Warszawa and Polnord as being in a relatively healthy
state. "Having won several contracts last month, Polnord will probably
improve its situation. An efficient structure and its anticipated merger with
Energobudowa, will probably increase the company's productive power and
effectiveness," he says.
"Mostostal Zabrze and Mostostal Export will perform poorly by comparison,"
he continues.
Contributed by:
Mirosław Kuk
