Budimex loses PLN 68.5m in works in Warsaw airport
opublikowano: 30-09-2005, 13:55
Warsaw (Puls Biznesu) – In April 2006, Budimex, Poland’s listed construction company, was to end works over the second terminal in the Warsaw airport. The project is worth USD 200m (EUR 166.3m).
Warsaw (Puls Biznesu) – In April 2006, Budimex, Poland’s listed construction company, was to end works over the second terminal in the Warsaw airport. The project is worth USD 200m (EUR 166.3m). For the time being, all companies involved in construction works, including Budimex, Ferrovial Agroman (Ferrovial group owns 60 percent of Budimex) and Estudio Lamela have lost about PLN 185m (EUR 47.2m). Only Budimex lost PLN 68.5m.
Controversies over the project have started long ago. The Supreme Chamber of Control (NIK) showed problems while Budimex rivals protested and warned that the company would have to pay for the contract. In May, during the meeting of Budimex supervisory board, Ryszard Jach, one of the board members recommended by Commercial Union (the pension fund has over 5 percent in Budimex, since its member in the board), demanded the management to deliver a written notice concerning the contract. A special control team was created and it was to present its findings during a meeting at the end of September. The meeting was not organised. Instead, Budimex announced that a general shareholders’ meeting will be held on October 25th to change the members of the supervisory board. Ryszard Jach is going to be replaced by someone else...It was Marek Michalowski, Budimex CEO who told Ryszard Jach that he would excluded from the board. The CEO says that there is nothing wrong about the contract.It is being realised so it’s hard to evaluate. I don’t remember exactly how far the works are done. But I do not expect any disaster. Nor big profits, the CEO of the listed company said.Budimex CFO explained why the company had such a big loss because of the project.We signed agreement in dollars but the exchange rate has dropped since that time. In 2002, when we signed the agreement, dollar cost over PLN 4, now it’s nearly PLN 1 less. The consortium will get PLN 200m less than we planned, the CFO said.To everybody’s surprise, Budimex failed to hedge against exchange rate risk. But some representatives of the company say that the contract is to be renegotiated.The company is in clash with the investor, i.e. PPL, the airport operator. The dollar has fallen. The investor should understand that, Stanislaw Pacuk, the chairman of the board said.Representatives of PPL know nothing about these talks.- A clash? I’ve never heard of one. Renegotiating price? No way, Edyta Mikolajczyk, PPL spokesperson said.(USD 1 = EUR 0.832)(PLN 1 = EUR 0.255)
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