The emphasis on the construction of solar farm projects in Australia was one of the key factors that led to Greek infrastructure giant Ellaktor taking losses of €155 million for 2019 and €132.4 million in 2018.
After tax losses of €105.7 million in 2019 and €95.6 million for 2018 were recorded. According to reneweconomy.com, Ellaktor, was responsible for solar farm construction projects in Queensland, New South Wales and Victoria. The losses have led to Ellaktor pulling out of the Australian solar market – just a few years after entering it through its Biosar subsidiary.
The company announced in a statement that it had completed its projects ( in Australia) and that it would “exit these markets.” Reneweconomy.com said that the company would focus on markets in Greece and Rumania and wind farms would be the focus of its renewable division.
The website noted that every construction company involved in large-scale solar projects in Australia had been affected by losses including, among others, RCR Tomlinson, which folded two years ago, and Downer which has pulled out of the market. It said solar farm developers were affected by delays and disputes between contractors and owners.
Ellaktor said in a statement that: “increased cost caused by defective supply materials, delays in the projects’ completion that have brought upon penalties, as well as increased demands by the legal and regulatory framework, especially with regards to the case of Australia.”
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“The Group has now significantly reduced its activity abroad, either by completing the projects it had undertaken (for example, Australia, Albania, Serbia) or by withdrawing from loss-making activities (stop loss), as part of the Construction restructuring,” it writes.
The CEO of the An. Kallitsantsis Group and of Ellaktor, Anastastasios Kallikantsis, said in a statement that: “in the construction (arm of the group) we made decisive steps, such as the disengagement from harmful projects and the great restriction of its activity abroad.
“In 2020, the priorities are, firstly, the utilisation of all available options for the protection of the Group and its people from the COVID-19 pandemic, with a parallel emphasis on minimising the impact on our activities. Secondly, the implementation of … investment plans (of) individual branches and, thirdly, the achievement of the goal of rearranging the construction (arm),” Mr Kallitsantsis said.
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