Page change in Intrakat with profitability

In the new era of Intrakat - the Greek construction company with an international presence -, where the acquisition of Aktor, also a Greek construction company, will play the most crucial role, the management laid the foundations in the first half of 2023. During this period, the financials of the country's fourth construction group (based on backlog) improved dramatically.

In the first semester of 2023, the company's revenue was more than one and a half times higher compared to 2021, before coming under the ownership of shipowners Giannis Kaymenakis, Dimitris Bakos, and Alexandros Exarchos. The company was founded 31 years ago by Intracom Holdings of Socratis Kokkalis and undertook public construction projects in 2011. Today, a year after the majority of shares were acquired by Bakos-Kaymenakis-Exarchos, it marks a historic high in unexecuted projects. The Kokkalis group still retains a 5.1% stake in the construction. The construction projects to be executed have reached 2.15 billion euros, increased by 1 billion in 12 months, when in 2021, under Kokkalis, it did not exceed 800 million euros.

The turnover increased by 70% compared to the first semester of 2021 and by 43% compared to the first half of 2022, reaching just under 150 million. EBITDA was set at 9 million, net profits at 18 million, and available cash at 60 million euros, up by 750% compared to two years ago. The positive impact in all sectors has led EBITDA to recover in less than 12 months since the new management took over. During their tenure, cash flows from financing activities reached 99 million (from 17 million in 2021), thanks to revenue from the increase in share capital. At the same time, it managed to reduce borrowing by 26% within a year, resulting in it now reaching 94 million.

Building the Second Largest Construction Hub

When and if the acquisition of Akto by Intrakat gets the green light from the Competition Committee, the latter will have built the second largest player in the construction market in terms of size. The group's management – which, according to sources, is considering changing its name, leaving behind the "Intra" associated with the Kokkalis group – will have in its quiver unfinished projects with a budget of 5 billion and will achieve with Akto what it achieved in less than a year with Intrakat, as Alexandros Exarchou stated to stock market analysts on Wednesday.

The new company will be, according to its CEO, one of the largest entities not only in Greece but also in the southern Balkans. However, it will operate selectively abroad, at least for the next three years. It seems that the management studied and does not intend to repeat the moves of Akto abroad, which exposed the construction business to loss-making projects. Hence, Mr. Exarchou emphasized that expansion into other countries "will be done conservatively to ensure that we do not suffer losses stemming from ignorance of the market."

First-Time Revenue from Energy

More than 40 billion euros of European funds are expected to be invested in infrastructure projects by 2030, with Intrakat aiming to benefit from them in order to increase its market share in public infrastructure projects and target projects with high-profit margins. However, the group's plans also include investments in the energy sector, an area set to become a strong pillar of growth for Intrakat. By 2025, its portfolio will include wind parks with a capacity of 753 MW and photovoltaics with a capacity of 542 MW, while by 2030 it will have added energy storage projects of 250 MW.

With all wind and photovoltaic projects installed, the proforma EBITDA will be shaped to 120 million euros annually. Already, in the first half of 2023, the Renewable Energy Sources sector contributed to the group's turnover for the first time, with the sector's revenues amounting to 3 million euros.

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