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[brumbrum79] 10/3/2021 23:02

There are some Ukranian articles about court challenge between Astrogas llc, Geonadra and Naftogazexpluatatsiya LLC.

I don't understand one thing.
Astrogas llc is a subsidiary of Cadogan Petroleum plc but journalists refers 'Astrogaz LLC from the orbit of Nikolai Zlochevsky (Burisma Group)'.

[brumbrum79] 10/3/2021 22:56

Natural Gas Production Favorites Swapped Places

On February 23, the Sixth Administrative Court of Appeal overturned the decision of the Kiev District Administrative Court dated October 6, 2020, thereby completely redistributing the roles between the key disputants of the process, Astrogaz LLC from the orbit of Nikolai Zlochevsky and Naftogazexpluatatsiya LLC by Rinat Akhmetov.

In the photo - Nikolay Zlochevsky

This fight was started by the side of the founder of the Burisma group. The lawsuit, filed back in the summer of 2019, contained claims against the State Service of Geology and Subsoil in terms of inaction to issue a special permit for the use of subsoil. We are talking about a license for the commercial development of the Pirkovskoye oil and gas condensate field (Poltava region).

Astrogaz argued that the company had submitted the package of documents allowing it to apply for out-of-competition obtaining a special permit to the State Geological Survey in October 2018, but did not receive a response until a direct appeal to the court, that is, in the fall of 2020. Why is this firm better than others, which gives it a reason to expect to receive a license without a competition? Mostly the background.

Since 2007, Astrogaz has had a special permit for the use of subsoil in the Pirkovskoye field. Since that time, the company has invested decently in "its" site, having carried out its geological study, including pilot development, as a result of which the so-called "approbation of reserves" was carried out. This very approbation, according to the rules that existed several years ago, was a sufficient basis for the out-of-competition issuance of a special permit.

Just for a new special permit for the use of subsoil under a simplified procedure (without an auction), Astrogaz began to apply for a few years ago, when the company's “old” license was about to expire.

The Gosgeonedra did not feel this petition, explaining their refusal by the fact that the licensee did not fulfill the work program, which is an integral part of the license, which led the parties to the courtroom. In addition to a philosophical complaint about the passivity of the geological department, the lawsuit of Nikolai Zlochevsky's side also contained a specific mundane part: to oblige Roman Opimakh's department to issue a special permit.

As OLIGARCH reported, the District Administrative Court satisfied the application, however, it did so in such a way that neither side was satisfied with the decision. It said that the inactivity of the Gosgeonedr could indeed be qualified as unlawful, but at the same time there was no question of any obligation on the part of the state structure to issue a special permit to Astrogaz. The first instance court limited itself to a cautionary conclusion about the need to consider the applicant's application.

For Astrogaz LLC, this meant that the company had to return to the standby mode again, which in the case of licensing activities in the field of subsoil use could last for years. For OOO Naftogazexpluatatsiya, things were not much better. That is why it turned out that all the participants in the process filed an appeal against the decision of the first instance, but, naturally, with polar demands.

"The Astrogaz company asks the court of appeal to cancel the decision of the court of first instance and adopt a new ruling, which satisfies the administrative claim in full," - said in a statement by the lawyers of the side of Nikolai Zlochevsky.

In the photo - Rinat Akhmetov

"The company" Naftogazexpluatatsiya "asks the court of appeal to cancel the ruling of the District Administrative Court of Kiev dated October 6, 2020 and issue a new ruling, which to satisfy the claim in full," insisted Rinat Akhmetova.

From the background of this conflict, it is clear that initially the spark ran between Astrogaz and Gosgeonedra (and not Astrogaz and Naftogazexpluatatsiya).

But where is Rinat Akhmetov's company here? The lawyers of the richest Ukrainian answered this question quite intelligibly.

“Claims filed by Astrogaz LLC relate to the granting of the right to use the subsoil of the Pirkovskoye oil and gas condensate field for the purpose of geological exploration, which is located within the Pirkovskaya area. Meanwhile, by the order of the Cabinet of Ministers dated July 5, 2019 No. 507-r "On determining the winners of tenders for concluding agreements on the sharing of hydrocarbons," OOO Neftegazexpluatatsiya was identified as one of the winners of the tender for concluding an agreement on the sharing of hydrocarbons to be produced within the Zinkovsky block. After signing and state registration of the transaction, the company, as an investor, will be granted a special permit for the use of subsoil for the purpose of geological exploration with subsequent production of hydrocarbons and for the performance of work stipulated by the production sharing agreement within the Zinkovsky site (including on the territory of Pirkovskaya area) ", - pointed out the side of Rinat Akhmetov in court.

More than a year has passed since that moment, which showed that Neftegazexpluatatsiya looked like it was in the water: the company has not yet reached the development stage.

Zinkovsky, whose gas resources are estimated at 3.8 billion cubic meters. And this is largely due to the conflict with Astrogaz LLC.

But is Rinat Akhmetov's team approaching its goal now, when the Sixth Administrative Court of Appeal canceled the above-mentioned decision of the Kiev District Administrative Court last year? Yes, it’s true, it can still change. Zlochevsky's team has the right to prove their case in the Supreme Court, whose decision today is absolutely unpredictable.

[brumbrum79] 10/3/2021 22:50

АХМ;ЕТi4;В ТЕС;НИi8; ЗЛО;ЧЕh2;СК 54;ГО
05.03.2021
Фав;орl0;ты про;изk4;од 89;тв
072; при;роk6;но 75;о газ;а пом;енn3;ли 89;ь мес;таl4;и

23 фев;раl3;я Шес;тоl1; апе;ллn3;ци 86;нн
099;й адм;инl0;ст 88;ат
080;вный суд; отм;енl0;л реш;енl0;е Окр;ужl5;ог 86; адм;инl9;уд 72; Кие;ва от 6 окт;ябl8;я 2020 г., тем; сам;ым пол;ноl9;ть02; пер;ерk2;сп 88;ед
077;лив рол;и меж;ду клю;чеk4;ым 80; спо;рщl0;ка 84;и про;цеl9;са, ком;паl5;ия 84;и ООО; «Асm0;ро 75;аз» из орб;итm9; Ник;олk2;я Зло;чеk4;ск 86;го и ООО; «Наm2;то 75;аз
101;ксплуатация;» Рин;атk2; Ахм;етl6;ва.

На фот;о – Ник;олk2;й Зло;чеk4;ск 80;й

Эту; схв;атl2;у нач;алk2; сто;роl5;а осн;овk2;те 83;я гру;ппm9; Burisma. В иск;е, офо;рмl3;ен 85;ом еще; лет;ом 2019 г., сод;ерk8;ал 80;сь пре;теl5;зи 80; к Гос;удk2;рс 90;ве
085;ной слу;жбk7; гео;лоk5;ии и нед;р в час;ти без;деl1;ст 74;ия по выд;ачk7; спе;циk2;ль 85;ог
086; раз;реm6;ен 80;я на пол;ьзl6;ва 85;ие нед;раl4;и. Реч;ь иде;т про; лиц;енk9;ию на про;мыm6;ле 85;ну
102; раз;раk3;от 82;у Пир;коk4;ск 86;го неф;теk5;аз 86;ко
085;денсатного мес;тоl8;ож 76;ен
080;я (Поl3;та 74;ск
072;я обл;.).

В «Асm0;ро 75;аз
077;» утв;ерk8;да 83;и, что; пак;ет док;умk7;нт 86;в, поз;воl3;яю 97;ий пре;теl5;до 74;ат
100; на вне;коl5;ку 88;сн
086;е пол;учk7;ни 77; спе;црk2;зр 77;ше
085;ия, ком;паl5;ия пер;едk2;ла в Гос;геl6;не 76;ра еще; в окт;ябl8;е 2018 год;а, но не пол;учl0;ла отв;етk2; впл;отn0; до неп;осl8;ед 89;тв
077;нного обр;ащk7;ни03; в суд;, то ест;ь, осе;ни 2020-го. Чем; эта; фир;ма луч;ше дру;гиm3;, что; дае;т ей осн;овk2;ни 77; рас;счl0;ты 74;ат
100; на пол;учk7;ни 77; лиц;енk9;ии без; кон;куl8;са? Гла;внm9;м обр;азl6;м, пре;дыl9;то 88;ие
081;.

Спе;црk2;зр 77;ше
085;ием на пол;ьзl6;ва 85;ие нед;раl4;и Пир;коk4;ск 86;го мес;тоl8;ож 76;ен
080;я «Асm0;ро 75;аз» вла;деl3; еще; с 2007 год;а. С тог;о вре;меl5;и ком;паl5;ия при;лиm5;но вло;жиl3;ас00; в «свl6;й» уча;стl6;к, про;веk6;я его; гео;лоk5;ич 77;ск
086;е изу;чеl5;ие, в том; чис;ле опы;тнl6;-пр
086;мышленную раз;раk3;от 82;у, по рез;улn0;та 90;ам кот;орl6;го был;а осу;щеl9;тв 83;ен
072; так; наз;ывk2;ем 72;я «апl8;об 72;ци
103; зап;асl6;в». Эта; сам;ая апр;обk2;ци03;, по сущ;есm0;во 74;ав
096;им нес;коl3;ьк 86; лет; наз;ад пра;виl3;ам, явл;ялk2;сь дос;таm0;оч 85;ым осн;овk2;ни 77;м для; вне;коl5;ку 88;сн
086;й выд;ачl0; спе;циk2;ль 85;ог
086; раз;реm6;ен 80;я.

Как; раз; на пол;учk7;ни 77; нов;огl6; спе;црk2;зр 77;ше
085;ия на пол;ьзl6;ва 85;ие нед;раl4;и по упр;ощk7;нн 86;й про;цеk6;ур 77; (беk9; аук;циl6;на) в ООО; «Асm0;ро 75;аз» ста;ли пре;теl5;до 74;ат
100; нес;коl3;ьк 86; лет; наз;ад, ког;да к сво;емm1; зав;ерm6;ен 80;ю под;хоk6;ил сро;к дей;стk4;ия «стk2;ро 81;» лиц;енk9;ии ком;паl5;ии.

В Гос;геl6;не 76;ра
093; эти;м ход;атk2;йс 90;во
084; не про;ниl2;ли 89;ь, объ;ясl5;ив сво;й отк;аз тем;, что; лиц;енk9;иа 90; не вып;олl5;ил про;грk2;мм 91; раб;от, явл;яюm7;ую 89;я нео;тъk7;мл 77;мо
081; час;тьn2; лиц;енk9;ии, что; и при;веl3;о сто;роl5;ы в зал; суд;ебl5;ых зас;едk2;ни 81;. Кро;ме фил;осl6;фс 82;ой жал;обm9; на пас;сиk4;но 89;ть гео;лоk5;ич 77;ск
086;го вед;омl9;тв 72;, иск; сто;роl5;ы Ник;олk2;я Зло;чеk4;ск 86;го сод;ерk8;ал и кон;крk7;тн 91;ю мир;скm1;ю час;ть: обя;заm0;ь вед;омl9;тв 86; Ром;анk2; Опи;маm3;а выд;атn0; спе;црk2;зр 77;ше
085;ие.

Как; соо;бщk2;л «ОЛh8;ГА 56;Х», Окр;ужl5;ой адм;инl9;уд зая;влk7;ни 77; удо;влk7;тв 86;ри
083;, пра;вдk2;, сде;лаl3; это; так;, что; реш;енl0;е не уст;роl0;ло ни одн;у из сто;роl5;. В нем; гов;орl0;ло 89;ь, что; без;деn3;те 83;ьн
086;сть Гос;геl6;не 76;р дей;стk4;ит 77;ль
085;о мож;но ква;лиm2;иц 80;ро
074;ать как; про;тиk4;оп 88;ав
085;ую, но при; это;м ни про; как;ое обя;заm0;ел00;ст
074;о гос;стl8;ук 90;ур
099; выд;атn0; спе;црk2;зр 77;ше
085;ие «Асm0;ро 75;аз
091;» реч;ь не шла;. Суд; пер;воl1; инс;таl5;ци 80; огр;анl0;чи 83;ся наз;идk2;те 83;ьн
099;м выв;одl6;м о нео;бхl6;ди 84;ос
090;и рас;смl6;тр 77;ть зая;влk7;ни 77; сои;скk2;те 83;я.

Для; ООО; «Асm0;ро 75;аз» это; озн;ачk2;ло, что; ком;паl5;ия опя;ть дол;жнk2; вер;нуm0;ьс03; в реж;им ожи;даl5;ия, кот;орm9;й в слу;чаk7; с раз;реm6;ит 77;ль
085;ой дея;теl3;ьн 86;ст
100;ю в сфе;ре нед;роl7;ол00;зо
074;ания мож;ет дли;тьl9;я год;амl0;. Для; ООО; «Наm2;то 75;аз
101;ксплуатация;» дел;а обс;тоn3;ли не на мно;го луч;ше. Име;ннl6; поэ;тоl4;у и пол;учl0;ло 89;ь так;, что; апе;ллn3;ци02; на реш;енl0;е пер;воl1; инс;таl5;ци 80; под;алl0; все; уча;стl5;ик 80; про;цеl9;са, но, ест;есm0;ве 85;но, с пол;ярl5;ым 80; тре;боk4;ан 80;ям
080;.

«Коl4;па 85;ия «Асm0;ро 75;аз» про;сиm0; суд; апе;ллn3;ци 86;нн
086;й инс;таl5;ци 80; отм;енl0;ть реш;енl0;е суд;а пер;воl1; инс;таl5;ци 80; и при;няm0;ь нов;ое пос;таl5;ов 83;ен
080;е, кот;орm9;м адм;инl0;ст 88;ат
080;вный иск; удо;влk7;тв 86;ри
090;ь пол;ноl9;ть02;», – гов;орl0;тс03; в зая;влk7;ни 80; юри;стl6;в сто;роl5;ы Ник;олk2;я Зло;чеk4;ск 86;го.

На фот;о – Рин;ат Ахм;етl6;в

«Коl4;па 85;ия «Наm2;то 75;аз
101;ксплуатация;» про;сяm0; суд; апе;ллn3;ци 86;нн
086;й инс;таl5;ци 80; отм;енl0;ть пос;таl5;ов 83;ен
080;е Окр;ужl5;ог 86; адм;инl9;уд 72; Кие;ва от 6 окт;ябl8;я 2020 г. и вын;есm0;и нов;ое пос;таl5;ов 83;ен
080;е, кот;орm9;м в удо;влk7;тв 86;ри иск;а отк;азk2;ть в пол;ноl4; объ;емk7;», – нас;таl0;ва 83;а сто;роl5;а Рин;атk2; Ахм;етl6;ва.

Из пре;дыl9;то 88;ии это;го кон;флl0;кт 72; вид;но, что; изн;ачk2;ль 85;о иск;ра про;беk8;ал 72; меж;ду «Асm0;ро 75;аз
086;м» и Гос;геl6;не 76;ра
084;и (а не «Асm0;ро 75;аз
086;м» и «Наm2;то 75;аз
101;ксплуатацие;й»).

Но при;чеl4; в так;ом слу;чаk7; зде;сь ком;паl5;ия Рин;атk2; Ахм;етl6;ва? На это;т воп;роl9; юри;стm9; сам;огl6; бог;атl6;го укр;аиl5;ца отв;етl0;ли дос;таm0;оч 85;о дох;одm5;ив 86;.

«Заn3;вл 77;нн
099;е ООО; «Асm0;ро 75;аз» иск;овm9;е тре;боk4;ан 80;я кас;аюm0;ся пре;доl9;та 74;ле
085;ия пра;ва пол;ьзl6;ва 85;ия нед;раl4;и Пир;коk4;ск 86;го неф;теk5;аз 86;ко
085;денсатного мес;тоl8;ож 76;ен
080;я с цел;ью гео;лоk5;ич 77;ск
086;го изу;чеl5;ия, кот;орl6;е рас;поl3;ож 77;но в пре;деl3;ах Пир;коk4;ск 86;й пло;щаk6;и. Меж;ду тем;, рас;поl8;яж 77;ни
077;м Каб;миl5;а от 5 июл;я 2019 №507-р «Об опр;едk7;ле 85;ии поб;едl0;те 83;ей кон;куl8;со 74; на зак;люm5;ен 80;е сог;лаm6;ен 80;й о раз;деl3;е угл;евl6;до 88;од
086;в» ООО; «Неm2;те 75;аз
101;ксплуатация;» опр;едk7;ле 85;о одн;им из поб;едl0;те 83;ей кон;куl8;са на зак;люm5;ен 80;е сог;лаm6;ен 80;я о раз;деl3;е угл;евl6;до 88;од
086;в, кот;орm9;е буд;ут доб;ывk2;ть 89;я в пре;деl3;ах уча;стl2;а Зин;коk4;ск 80;й. Пос;ле под;пиl9;ан 80;я и гос;удk2;рс 90;ве
085;ной рег;исm0;ра 94;ии сде;лкl0; общ;есm0;ву как; инв;есm0;ор 91; буд;ет пре;доl9;та 74;ле
085;о спе;циk2;ль 85;ое раз;реm6;ен 80;е на пол;ьзl6;ва 85;ие нед;раl4;и с цел;ью гео;лоk5;ич 77;ск
086;го изу;чеl5;ия с пос;леk6;ую 97;ей доб;ычk7;й угл;евl6;до 88;од
086;в и на вып;олl5;ен 80;е раб;от, пре;дуl9;мо 90;ре
085;ных сог;лаm6;ен 80;ем о раз;деl3;е про;дуl2;ци 80;, в пре;деl3;ах уча;стl2;а Зин;коk4;ск 80;й (в т.ч. на тер;риm0;ор 80;и Пир;коk4;ск 86;й пло;щаk6;и)», – ука;зыk4;ал 72; сто;роl5;а Рин;атk2; Ахм;етl6;ва в суд;е.

С тог;о мом;енm0;а про;шлl6; бол;ьшk7; год;а, кот;орm9;й пок;азk2;л, что; «Неm2;те 75;аз
101;ксплуатация;» как; в вод;у гля;деl3;а: ком;паl5;ия до сих; пор; не дош;ла до ста;диl0; раз;раk3;от 82;и уча;стl2;а Зин;коk4;ск 80;й, чьи; рес;урl9;ы газ;а оце;ниk4;аю 90;ся в 3,8 млр;д куб; м. И вин;ой это;му во мно;гоl4; явл;яеm0;ся как; раз; кон;флl0;кт с ООО; «Асm0;ро 75;аз».

Но при;блl0;зи 83;ас
100; ли к сво;ей цел;и ком;анk6;а Рин;атk2; Ахм;етl6;ва сей;чаl9;, ког;да Шес;тоl1; апе;ллn3;ци 86;нн
099;й адм;инl9;уд отм;енl0;л упо;мяl5;ут 86;е про;шлl6;го 76;не
077; реш;енl0;е Окр;ужl5;ог 86; адм;инl9;уд 72; Кие;ва? Да, пра;вдk2;, все; еще; мож;ет изм;енl0;ть 89;я. За ком;анk6;ой Зло;чеk4;ск 86;го ост;аеm0;ся пра;во док;азk2;ть сво;ю пра;воm0;у в Вер;хоk4;но 84; суд;е, чье; реш;енl0;е на сег;одl5;я абс;олn2;тн 86; неп;реk6;ск 72;зу
077;мо.

oligarh.media
Link:

hxxp://povin.com.ua/320119-05-03.html

[shortcpx] 10/3/2021 21:10

Yet they're begging for an extension. No mention of why like they're arranging a refinancing with another institution etc.

[shortcpx] 10/3/2021 21:08

Where's the money, Lebowski?

[thordon] 10/3/2021 19:12

The Economics
In recent years, by offering integrated services in different sectors, Proger has managed to consolidate its role as a General Engineer able to adapt, through a multidisciplinary approach, to the variability of demand.

2020 will close with a turnover of the Italian Spa alone of around 83 million euros (compared to 89 million in 2019) and a Group turnover of around 130 million euros.

The slight decline recorded in 2020 (-7.3%) is attributable to the postponement of some orders to 2021-2022, due to the epidemiological emergency from COVID-19, despite at the same time the company was called upon to hire a essential strategic role to face the emergency by providing services in the sectors of health, energy, transport logistics and procurement of medical equipment and medical devices.

Also for this reason - and for some recent acquisitions in the maintenance engineering sector - a strong increase in revenues is expected in the three-year period 2020-2022: The turnover forecast of the Italian Spa alone stands at 128.7 million in 2021 and 130, 6 million in 2022.

The compound annual growth rate (CAGR) is expected to be + 13.8%.

The contribution margin will increase from the current 25.6 million to 39.9 million euros in 2021 and 41.1 in 2022.

EBITDA will go from 8.6% to 15.5% in 2022.

Economic data 2020-2022
Income Statement (mln €)

2020

2021

2022

Aggregate

Production value

82.4

128.7

130.6

341.7

Costs of Production

(56.9)

(88.8)

(89.5)

(235.2)

Contribution margin

25.6

39.9

41.1

106.6

Fixed and corporate costs

(17.0)

(25.5)

(25.6)

(68.1)

EBITDA

8.6

14.4

15.5

38.5

EBITDA Margin

10.4%

11.2%

11.9%



FSC provision

(1.2)

(1.5)

(1.8)

(4.5)

Depreciation

(0.7)

(0.9)

(0.7)

(2.3)

EBIT

6.7

12.0

13.0

31.7

EBIT Margin

8.1%

9.3%

10.0%



Financial Management

(1.6)

(1.8)

(1.8)

(5.2)

EBT

5.1

10.2

11.2

26.5

Taxes

(2.0)

(4.1)

(4.5)

(10.6)

Operating result

3.1

6.1

6.7

15.9

[researchcentre123] 10/3/2021 17:14

Does anyone know what progers' net assets are? (I'm not talking about the holding company but the trading company?)

[shortcpx] 09/3/2021 19:08

Or they *really* don't want Proger equity

[shortcpx] 09/3/2021 14:37

And Fady the Cuck bent over and took it.

[targatarga] 09/3/2021 13:09

On a wing and a prayer!

[researchcentre123] 09/3/2021 12:56

I am wondering why someone would agree to a 3 week extension when proger have known for 2 years that it is due? Does that mean CAD actually think they will get it in 3 weeks - or that they will get some proposal in 3 weeks?

[russman] 09/3/2021 08:46

3 week extension, it would appear that Proger are stalling.
Extending their loan by another 2 years would not be acceptable.

[diesel] 09/3/2021 08:07

There must be a plan....so if they get the money back what next, cos there doesn’t seem to be a business plan.

[shortcpx] 08/3/2021 09:46

Yup RTO in and kick out Fady Arbuckle

[diesel] 08/3/2021 08:52

Russman, good point, the loan is almost twice the mcap, and CAD still have some £10m in cash if memory serves me well.

[russman] 08/3/2021 07:36

Or Proger could buy CAD instead of repaying the loan.

[thordon] 07/3/2021 12:37

The only option is the holding company to increase the % of there holding company to near 40% to Cadogan ; as the holding company do not have the cash to repay.

Another option is to freeze the Assets of the holding company , but the courts will either sell the assets or award a higher % to Cadogan - Note a more risky action.

[russman] 07/3/2021 11:42

I suspect the repayment is not guaranteed by the Proger holding capital.

[shortcpx] 06/3/2021 22:06

Important level of backlog and ability to create synergies - Proger, in addition to boasting a backlog amounting to 272 million euros and a pipeline of 140 million euros as of 11/30/2019 (of which 110.5 million already awarded), is assuming a strategic role in the face of the Covid-19 (coronavirus) emergency through the realization of orders mainly related to the expansion of health facilities as well as to the supply of medical devices such as lung ventilators and face masks. The organizational capacity and the investment in strategic shareholdings have allowed the Company to benefit from specific synergies, fundamental for the acquisition of these contracts and which will already have positive effects on the 2020 results, estimated at around 19 million euros in terms of Value of Production (VdP) and a contribution margin of € 4.4 million. Maintaining adequate levels of margins - the 2019 results relating to Proger could show a contraction of the VdP of up to 20% compared to the estimated budget of 103.5 million euros. Despite this, the application of the "back to back" principle, envisaged in the contracts with suppliers (which involves the simultaneous reduction of the related costs and revenues), has allowed Proger to maintain adequate levels of EBITDA margin adj (including bad debt ) in a range between 9.5% and 10.0%. The deviations from the budget are attributable to the delayed activation of some orders (mainly the Libyan one) in addition to those impacted by the Covid-19 emergency, for a total of approximately 47 million euros. As regards foreign legal entities, revenues amounted to around 39.4 million euros (around 20 million in 2018), with an EBITDA of 2.4 million euros (2.2 million euros in 2018). The Agency believes that the estimates made by the Management are reliable, which foresee the achievement of an aggregate turnover of approximately 178 million euros by 2020

[thordon] 06/3/2021 12:56

RATING COMMUNICATION

Cerved Rating Agency on 23/04/2019 awarded the A3.1 rating to Proger S.p.A.
Proger SpA (Proger or Company) is mainly active as an engineering company for the construction and management of infrastructure works, Oil & Gas and construction at national and international level. The reference shareholders are Sgambati Umberto and Lombardi Marco, President and both AD of the Company, through Proger Ignegneria Srl (72% of Proger SpA) and Proger Managers & Partners (54.99% of Proger Ingegneria Srl). The Company has also been owned since 2015 by Simest Spa, with a 27% stake. In March 2019, the Company and its parent company Proger Ingegneria Srl concluded a paid share capital increase of 13.4 million euros, carried out through convertible financing granted by Cadogan Petroleum Holdings BV,a Ukrainian companylisted on the London Stock Exchange, to Proger Managers & Partners. In return for the exercise of the right of conversion, Cadogan will hold 33% of the capital of Proger Ingegneria Srl.
Fattori di rating (Key rating factors)
• Business model and market positioning Proger operates in four lines of business: Multidisciplinary Engineering (M.E.), Infrastructure & Real Estate (approximately 58.1% of the Value of Production, VdP, 2018), Oil & Gas (about 38%) and Security (1.4%) and Special Projects – Green Energy (2.4%). The Company develops its activity mainly abroad (67.7% of the VdP, in 2018), with a strong contribution from Saudi Arabia and Egypt, and in Italy (32.3% of the VdP), both through internal workforce and through subcontractors, according to the needs and types of orders acquired. The Company also operates with some local legal entities that are not currently consolidated in the results of Proger Spa, but whose financial statements are revised. It is the leading italian no-captive company in the sector and among the top 100 internationally (81st in 2018), benefiting from consolidated relationships with international players such as Eni and Leonardo, and national players, such as Terna, BNL and Anas. The Company is also a leader in the design of hospitals, with a consolidated track record on the national scene.
• Key financial results
The pre-final stand alone results show a VdP of 104.2 million euros, down on 2017 (-5.4% YoY), mainly due to a lower contribution from division M. E. (-27.8 million, -23% YoY), despite the growth of b.u. Oil & Gas (+11.2 million, + 12.2% YoY) and b.l. Infrastructure (+7.4 million, +7.4% YoY). EBITDA adj. increased to 9.9 million (9.2 million in 2017), thanks to b.l. Infrastructure(+3.5 million) which compensates for the reduction of the other b.u. (-0.7 million Oil&Gas and -0.9 million M. E.). The EBITDA margin, similarly, grew to 9.4% (8.3% in 2017), due to the different mix of b.u., the largest contribution of which derives from the B.L. Infrastructure and M. E., characterized by a greater margin. EBIT is suffering the same trend as EBITDA (7.9 million in 2018 vs 7.3 million in 2017, +7.1% YoY), compared with constant depreciation and amortization (1.9 million in 2018). Peg financial management for higher foreignexchange losses(0.4 million in 2018 vs 0.2 in 2017) and financial charges (1.7 vs 1.5 million) due to increased entrustments, with ebit coverage interest at 4.72x. Net profit is expected to be 4.1 million, in line with 2017 (4.0 million). From a financial point of view, the adjusted PFN for leasing stands at 32.4 million euros, an increase of 5.8 million euros compared to 2017, with an adj./EBITDA ADJ. PFN at 3.28x. As far as legal entities are concerned, revenues amount to approximately 20 million (13.4 million in 2017), with EBITDA of 2.2 million (1.8 million in 2017) and liquidity of 3.5 million, while the financial debts referred to them are in the hands of Proger SpA. The PFN adj / EBITDA adj pro-

form, as a result, stands at 2.92x. The order book at 31/12/18 amounts to approximately EUR 345 million, consisting mainly oforders in Saudi Arabia and Tunisia andframework agreements with Eni and Terna. The backlog, together with the 31/12/18 pipeline of approximately 674 million, guarantee visibility to the development of the plan (VdP expected to 168.8 million in 2019 and peak at 238.6 million in 2021).
• Liquidità (Liquidity)
The trend in operating liquidity denoted a negative balance of 6.3 million, due to the significant negative change in the CCN that totally absorbs the Gross Operating Cash Flow. The trend is impacted by the choice to finance some strategic suppliers, obtaining improvement economic conditions tosupport marginality, without limiting their availability of bank trusts. As of 31/12/18, in fact, the Company maintained an adequate buffer of about 20million on thetrust, useful for the development of the future growth plan. The increase in paid capital will also allow new financial resources to be raised with banks or private debt, in support of the growth plan.
Key risk factors
• Market risk
The Group is heavily dependent on macroeconomic and geopolitical dynamics, both internationally and nationally. With regard to abroad, it constantly monitors the country risk both before participation in a tender and periodically during the development of the orders in place. Similarly, in Italy, specific analyses are carried out to assess the creditworthiness of potential contractors before and during the development of a contract.
• Operational risk
Individual orders are subject to the risk of delays and slippage, covered by insurancepolicies. The Group's prospective results depend heavily on the performance of the first four projects (about 87% of the 2019 VDP).
• Financial risk
The Group is exposed to fluctuations in the interest rate on existing variable-rate loans, neutralised through the use of derivative hedging instruments (IRS on the aforementioned type of financing contracts). The Group limits currency risk by adopting a natural hedge policy on foreign orders.
Rating assumptions
• Production development in 2019-2020 in line with the business plan in terms of revenues and margins, unlike in 2018 due to the delayed capital increase in support of the growth plan
• Sustainable growth of the CCN, with a progressive reduction in average days of collection as a result of the credit management policies initiated by management in 2017
• PFN growing in line with business development, with PFN/EBITDA < 2.75x and EBIT interest coverage > 6.0x in 2019-2020
• Completion of the acquisition plan in 2019 and development of expected constant flows in the Business Plan
Rating sensitivities
• A trend in line with rating assumptions will allow the maintenance of the current rating class
• A deterioration in economic and financial performance compared to credit rating assumptions could lead to a
downgrade of the assigned rating

The methodology used can be consulted on the Cerved Rating Agency website – www.ratingagency.cerved.com Analyst Responsible: Donato Biancosino – [e-mail]
Chairman of the Rating Committee: Cristina Zuddas – [e-mail]
Cerved Rating Agency's rating, issued pursuant to Regulation (EC) 1060/2009 and subsequent amendments and additions, is an opinion on the merits of creditand that expresses in summary the ability of the evaluated entity to meet its obligations on time. Cerved Rating Agency's rating does not constitute investment advice or a form of financial advice; it does not amountto recommendations for the sale and holding of securities or for the holding of particularinvestments, nor does it provide any indication as to whether a particular investor should make a particular investment. The rating is subject to continuous monitoring until its withdrawal. The rating was issued at the request of the evaluated entity, or related third parties, who participated in the process by providing the necessary information requested by the analytical team. In addition, available public information and proprietary informationobtained from sources trusted by theCerved Rating Agency were used in the analysis. The rating has been communicated, within the time limits provided for by the current Regulation, to the person evaluated for the verification of any material errors.

[researchcentre123] 05/3/2021 13:49

I think they never planned on repaying - otherwise it would have been structured differently.

[thordon] 05/3/2021 08:26

I Know , its in the response of the letter.
By Law you have to inform , once that's exhausted then Lawyers next.

[russman] 05/3/2021 02:46

If they could repay, they would have repaid by the maturity date.