Polish builder PBG is eyeing opportunities in Ukraine and other east European countries to tap into their expanding infrastructure markets, its deputy chief executive said on Tuesday.
The company, which specializes in gas, oil, and water installations, has benefited from hefty investments in Poland’s infrastructure projects, many of which have been at least partially funded by the European Union. “We are looking east. We already have a contract in Armenia and now we are surveying the Ukrainian market,” Deputy CEO Przemyslaw Szkudlarczyk told news channel TVN CNBC Biznes.
The company, which last week sealed a 1.3 billion zlotys ($514 million) contract to expand underground gas storage for Polish gas distributor PGNiG, is also considering revising its 2008 guidance. It currently forecasts 2008 net profit at 142.6 million zlotys on revenue of 1.92 billion. “Having signed the contract we are closer to reviewing our guidance,” PBG’s Szkudlarczyk said.
“We will make our decision in 2-3 weeks.” He added the builder has an order book close to 6 billion zlotys, expecting to sign contracts worth “a few more billion” by year end. Its 2009 order book stands at almost 2 billion. “We have credit lines open for 1.3 billion zlotys, from which we used up 450 million, so we are not worried about any lack of funding,” Szkudlarczyk said. By 0948 GMT, PBG shares fell 1.2%, outperforming Warsaw’s construction index, which lost 2.7%. (Reuters)