William Malcolm

Metrostav Sees Profits Plummet In 2020

Last year, the Metrostav construction and development group’s net profit fell by 53.1 percent year on year to 761.8 million crowns. The reason for the decrease was the income from the sale of a larger office complex in 2019. The group’s revenues increased by 0.3 percent to 41.8 billion crowns. The Metrostav Group consists of 62 companies. The construction company Metrostav contributed the most to the result, accounting for 55 percent of sales.

“In 2019, the Group’s economic result significantly affected the sale of the Palmovka Open administrative complex to an institutional investor by the subsidiary Metrostav Development. If we adjusted the results for this real estate transaction, last year’s result from 2019 would be comparable,” said the President. Metrostav group František Kočí.

After Metrostav, Subterra, BeMo Tunneling, and the newly established company Metrostav Infrastructure contributed the most to sales. It specializes in construction in the field of traffic construction, especially on roads, highways, and bridge structures.

The largest projects of the construction company Metrostav last year included, for example, the reconstruction of the headquarters of the former Electric Companies in Bubeneč, Prague, the new Flow Building on Wenceslas Square, or the Church of Christ the Savior in Barrandov. Abroad, there were, for example, the Dýrafjordur tunnel in Iceland and two tunnels and a bridge over the Åstfjord in Norway.

Last year, among other things, Subterra broke through the Milochov tunnel in Slovakia, and its subsidiary Subterra Sverige began work on extending the Järfälla metro in the Swedish metropolis of Stockholm.

BeMo Tunneling has commissioned part of the Volmarstein Bridge on the A1 motorway in the German state of North Rhine-Westphalia. He and Subterra are working on the Garmisch Partenkirchen bypass.

“I am pleased that, despite the coronary crisis, we have managed to maintain the profitability of the group members, increase revenues, fill up work tanks for the future, tighten up old strategic operations and set new ones without compromising on social responsibility projects,” added Kočí.

The number of the group’s employees increased by 386 to 5,380 at the end of last year. The main shareholders of the group are DDM Group (51.34 percent), DOAS SK (23.18 percent), and DOAS CZ (17 percent). Behind all three companies are several natural persons from the Czech Republic and Slovakia.

The construction company Metrostav itself is being prosecuted in four cases. “In all cases, charges have been filed and proceedings are pending before the courts. In one case the main trial is before the court of the first instance, in other cases, the cases are at the appeal stage; the appeal of our company against an invalid decision on guilt and punishment, “Kostiha told ČTK earlier.

Metrostav was illegally sentenced by the Regional Court in Prague to a ban on participation in public contracts for three years and a fine of ten million in the corruption case of former Central Bohemian President David Rath. In the case of alleged machinations during the modernization of the Hotel Bohemia Chrudim, the Hradec Králové court banned construction activities related to subsidies and public support for six years. In addition, the company has to pay 600,000 crowns. Even in this case, the judgment is not final.

On the other hand, in 2019, a court in Hradec Králové illegally acquitted the company in a case concerning the preparation and implementation of a tender procedure within the project Restoration of Parts of the National Cultural Monument Hřebčín in Kladruby nad Labem. The company was also acquitted in the case of the Governor of the Liberec Region, Martin Půta, but in this case, the appellate court set aside the verdict last autumn.