New concessions, PPP projects and Romania among INTRAKAT’s new business priorities

Intrakat is moving forward with ambitious goals for acquisitions and backlog within and outside of Greece.

According to Mr. Alexandros Exarchou, Vice Chairman of the Board and CEO of Intrakat, speaking during the company’s Annual General Meeting, the aim is for the company’s backlog to remain at high levels, between 5-7 billion euros. At the same time, the Romanian market will become the Group’s second business base, while in the domestic construction sector, pursuing Concessions and Public-Private Partnerships (PPP) remains a key objective.

“We came to stay,” said the head of the Group. “We are building for the future,” he added, reminding that those who invested in Intrakat’s stock at the beginning of this endeavor have significantly increased their profits today.

Mr Exarchou stated that INTRAKAT aims to reach 2.5 billion euros in revenue by 2026. To achieve this more smoothly, INTRAKAT will seek to acquire smaller companies to gain immediate access to personnel and equipment, ensuring that projects run without interruption.

This means that INTRAKAT will proceed with acquiring technical companies that possess the desired components in the near future—though not necessarily immediately —as projects will continue to be abundant both within and outside the country.

Today, the backlog reaches 4.9 billion euros, the second largest in the construction sector in Greece, while revenues have exceeded 1.2 billion euros, providing new momentum to the Group’s business activities. Although it came almost at the end of the year, the acquisition of AKTOR in 2023 significantly contributed to this achievement.

Mr. Exarchou also noted the great interest in concession and PPP projects as they offer a continuous and predictable revenue stream. In response to a related question, he confirmed INTRAKAT’s interest in participating in the concession of the BOAK (Northern Crete Motorway).

Romania

INTRAKAT’s plans for Romania essentially involve building a second business base, given that the country is currently developing major infrastructure projects in highways and railways.

Referring to Romania, he emphasized that the development of this market is extremely important as it offers faster business growth compared to the Greek market. He also noted that the possession of four tunnel boring machines (TBMs) by AKTOR in Romania is a significant advantage over the competition, as the majority of the projects to be tendered in Romania will be in the Northeastern regions of the country, which are mostly mountainous.

Additionally, he added that Romania will not only continue to have access to significant resources but also gains geopolitical importance for the West due to its impending role as a bridge to Ukraine once the war ends. Mr. Exarchou mentioned that there will be very significant opportunities in the infrastructure market, such as the vertical axis Alexandroupolis – Kostantzias and others, and Intrakat will be well-positioned to gain shares in it.

Renewable energy projects

Regarding the recent deal with DEI Renewables, Mr Exarchou argued that it is a strategically significant move for INTRAKAT, possibly even more critical than acquiring AKTOR.

This is because the two entities are set to develop renewable energy projects up to 2.7 GW, adding 1 billion euros to the backlog. Additionally, they are considering acquiring operational solar or wind parks. “It’s not easy to find such parks because they are successful, hence expensive and hard to come by. However, we are studying one or two, focusing on those with past tariffs that comfortably service their debt,” he explained.

The head of Intrakat also extensively reviewed the Group’s performance in 2023, which positioned them at the forefront of the construction sector in Greece and Southeastern Europe, marking a milestone year and a new era for its operations. Notably, in 2023, the Group achieved significant revenue and gross profit growth, with a historic high backlog (€4.9 billion), profitability, and substantial improvement in capital structure, including a significant increase in equity, reduced net debt, and strengthened cash flows.

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