Real estate and infrastructures group Shikun & Binui Holdings Ltd. (TASE: SKBN), controlled by Naty Saidoff, made a net loss of NIS 62 million in the third quarter of 2017, which compares with a net profit of NIS 14 million in the corresponding quarter of 2018.
Shikun & Binui, headed by Eyal Lapidot, who took up the post of CEO of the company in June this year, had revenue of NIS 1.6 billion in the third quarter, representing a rise of 11% in comparison with the third quarter of 2018.
In the first nine months of 2019, Shikun & Binui's revenue grew 12% in comparison with the corresponding period of 2018, to NIS 4.7 billion, and the company posted a net profit of NIS 402 million, in large part thanks to the sale of most of its holdings in ADO Group, which yielded a gain of NIS 480 million. Shikun & Binui also revalued the balance of its holding in the company (7.5%), giving an additional gain of NIS 109 million.
Revenue from construction and infrastructure contracting in Israel grew 1% in the first nine months of 2019 to NIS 2.3 billion, while revenue from construction and infrastructure contracting overseas, excluding the US, was flat, at NIS 954 million.
The acquisition of a contractor in the US in April this year boosted Shikun & Binui's revenue from construction and infrastructure there by 67% to NIS 607 million, despite the delay in a project to build toll roads in Texas, which cut NIS 140 million from revenue (NIS 75 million in the third quarter), and caused a loss of $30 million in the first nine months of 2019 and $16 million in the third quarter.
The Texas toll roads are scheduled to open during 2020, and to be a source of cash flow for Shikun & Binui until 2068.
Real estate development in Israel brought the company revenue of NIS 780 million revenue in the first nine months of 2019, up 2% on the corresponding period of 2018, while revenue from real estate development overseas jumped 90% to NIS 338 million, as projects in Warsaw, Belgrade, Prague and Bucharest were completed.
Shikun & Biniu's share price has risen 153% so far this year, bringing its market cap to NIS 6.2 billion, on investors' expectations of improved results under Lapidot, who when he joined Shikun & Binui received options on shares representing 5% of the company, currently worth NIS 140 million, at a strike price of NIS 7.5 per share.
Saidoff bought control of Shikun & Binui (47%) from Shari Arison in mid-2018 for NIS 1.1 billion. His stake in the company is now worth NIS 2.9 billion.
Published by Globes, Israel business news - en.globes.co.il - on November 28, 2019
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