Negotiations are underway to sign an agreement for the maintenance of the systems
Company Nextcom (Tel Aviv Stock Exchange: Nextcom), which deals with the planning, construction and maintenance of infrastructure and solutions in the fields of communications and renewable energy, reports the signing of an agreement with companies in the French energy giant EDF Group to establish two solar farms over NIS 30 million. In addition, the companies are in advanced negotiations to sign an agreement for the maintenance of the systems by Nextcom for the period of operation of the solar systems.
Nextcom has announced that its granddaughter Nextcom Energy will design and build two ground-floor solar farms using photovoltaic technology with a total power of approximately MWp25. The construction of the project will take about six months from the date of the work entry order.
In the Company’s estimation, the profitability rates in the project will be similar to the profitability rates customary in the company in contracting projects.
The project will be carried out for Zohar Solar Park Ltd. and Kochav Michael Solar Park Ltd. of the EDF Renewable Energy Israel Group Ltd. (owned by the French Electric Company), which commissioned the services of Nextcom Energy.
Nextcom has in recent years been managing projects and construction of additional solar stations, an activity that is considered an important growth engine in the company.
Nextcom Group reports its financial results for the first quarter of 2020:
Revenues about NIS 76 million; Increase in operating profit to NIS 4.9 million and maintain a net profit
Nextcom Group, Which deals with the planning, construction and maintenance of infrastructure and solutions in the fields of communications and renewable energy, reports its financial results for the first quarter of 2020, reflecting the continued promotion and implementation of significant projects while improving operating profitability and maintaining a net profit.
Revenue The company in the first quarter of 2020 amounted to NIS 75.9 million, compared with revenues of NIS 78.5 million in the corresponding quarter in 2019. Revenues were impacted by continued growth in the wireless sector as a result of an increase in solar activity and progress in the Wind Turbines project in the Valley of Weeping, along with a decrease in the volume of project activity in the above-ground sector.
Operating profit In the first quarter of 2020, it amounted to NIS 4.9 million, compared with NIS 4.6 million in the corresponding quarter last year. The improvement in operating profit stems from an improvement in gross profitability in the wireless operating sector, and subsequently strict maintenance of operating expenses.
The net profit In the first quarter of 2020, it amounted to NIS 1.1 million. Financing expenses were affected by changes in the value of the securities portfolio due to a loss resulting from the declines in the stock market following the corona crisis.
Cash flow From current operations as of March 31, 2020, amounted to NIS 4.8 million.
Equity As of March 31, 2020, it amounted to NIS 70.6 million, approximately 33.9% of the total balance sheet, compared with equity of NIS 61.3 million, approximately 28.4% of the balance sheet on March 31, 2019.
As of the date of the report, the Company has no indications of material harm to the Company’s activities as a result of the global corona epidemic. The company makes great efforts to carry out the works as a usher and minimize the possible negative consequences of the incident.