PBG SA (PBG), Poland’s third-largest construction company, tumbled to a three-week low after posting a net loss in the first quarter.
The shares declined as much as 8.2 percent to 21.16 zloty, the weakest level since the builder started trading on the Warsaw Stock Exchange in 2004. It traded 5.7 percent lower at 21.75 zloty as of 13:19 in Warsaw, valuing the company at 313 million zloty ($91 million). The stock has slumped 69 percent this year, underperforming the WIG20 Index (WIG20), which slid 2.8 percent.
PBG reported a net loss of 60.5 million zloty in the first quarter, compared with a 24.1 million-zloty profit a year earlier, the company said in a statement yesterday. It attributed the loss to lower-margin road-building contracts.
“The results are very negative,” Piotr Nawrocki, a Warsaw-based analyst at Wood & Co. Financial Services AS wrote in a research note to clients today. “Management has to accelerate the clean up of its balance sheet of non-core assets and close unprofitable contracts as the still-growing debt is not good for restructuring.”
The company will soon resume talks with Spain’s Obrascon Huarte Lain SA (OHL) on the sale of some of its units, including engineering company Hydrobudowa Polska SA (HBP), Chief Executive Officer and the main shareholder Jerzy Wisniewski said at a news conference today. PBG will publish a “conservative” forecast for 2012-2013 in June, he said.
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