African projects cause Shikun & Binui heavy losses

The cancellation of a freeway venture in Ethiopia and the devaluation of the Nigerian foreign money are weighing closely on the Israeli development firm.

Unhealthy information from Africa continues to plague Israeli development and infrastructures firm Shikun & Binui Holdings Ltd. (TASE: SKBN). The corporate, managed by Naty Saidoff and managed by CEO Tamir Cohen, has introduced the lack of about NIS 98 million after a halt in a highways venture it’s constructing in Ethiopia. This may be added to the NIS 135 million loss that it recorded within the third quarter, for a complete lack of NIS 233 million. Shikun & Binui’s share value fell 5.61% at the moment to a market cap of NIS 4.7 billion, 20% down from the top of November.

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In November, Shikun & Binui introduced that because of the state of emergency in Ethiopia, and the rise in unrest and rioting, in addition to the shortage of cement within the nation, the venture to construct a 57 kilometer freeway was being discontinued attributable to power majeure.

To this growth should be added Shikun & Binui’s announcement final week about damaging results of devaluation of the Nigerian naira foreign money, which is predicted to trigger losses of over NIS 250 million shekels. Nigeria is one the primary nations wherein Shikun & Binui is lively in infrastructure and development contracting for presidency ministries and native authorities.

Shikhun & Binui reported on the finish of January there was a pointy 55% devaluation within the Nigerian foreign money towards the US greenback for the reason that finish of 2023. The impact of that devaluation for the primary quarter of 2024 will probably be a lack of NIS 107 million ($29 million), along with a lack of NIS 49 million that may seem within the fourth quarter of 2023 outcomes on account of a 22% devaluation of the naira throughout that quarter. That is along with a pointy devaluation of the naira within the first half of 2023 that led to a lack of over NIS 100 million.

Printed by Globes, Israel enterprise information – en.globes.co.il – on February 11, 2024.

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