Claims compensation for coronavirus lockdowns despite huge profits
What came out of the research:
- -The provocative judicial claim of Attiki Odos for lost toll profits during the pandemic
- – It asks the Greek people to pay another 200 million euros.
- – Company executives appear to be taking the money
- -In the two years of the pandemic, Attiki Odos not only made huge profits but also distributed a dividend to its shareholders of 82.6 million euros for 2020 and 84.4 million euros for 2021.
Attiki Odos, which cost the Greek people more than 3 billion euros, raises new claims against the Greek State and against insurance companies.
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The concession company (in which AKTOR concessions participates with 65,7488%, AVAX with 24,1858%, ETETH with 10,0231% and EGIS PROJECT with 0,0423%) that cut Attica in two last year, as thousands of drivers were trapped on the motorway it manages, but this year it was closed for a few hours as a precautionary measure due to snow, asks for the unimaginable amount of close to 300 million euros.
Of this amount, the claims of Attiki Odos from the Greek State amount to 200–210 million euros, which if it wins will be paid by all Greeks, despite the fact that the road axis is used only by the Athenians, while from the insurance companies, it asks the amount of 75 million euros.
This money, demanded by the company through the court, concerns lost toll revenues for the two years 2020-2021 when the government imposed restrictions on the movement of vehicles due to the coronavirus.
It is also directed against the group of insurance companies, as they have refused to pay compensation to the company from the pandemic since they claim that the damage to the project prevails in the insurance policy.
For its part, Attiki Odos claims that the deprivation of revenue was caused by the adoption of the restrictive measures of the Greek State and not any damage within the two road projects.
Money was also given to others.
Both in 2020 and 2021, when the government imposed restrictions on vehicle traffic due to a pandemic, the country’s major highways were compensated for their reduced revenues.
Thus, during the first period of the lockdown, the first half of 2020, with the corresponding decisions of the Ministry of Infrastructure and Transport, compensation of approximately 40 million euros was fixed to the managers of five motorways (“Olympia Odos S.A.”, “Aegean motorway S.A.” “NEA Odos S.A.” “MOTORWAY OF CENTRAL GREECE S.A. CONCESSION” “GEFYRA S.A.“).
Regarding the second half of 2020, the total compensation given by the state to the managers of these highways exceeded 26 million euros.
The amounts given for 2021 were corresponding.
From the payment of compensation, the exception was Attiki Odos (and the Moreas motorway). Indeed, the Greek State argues that the money should be covered by insurance, as the insurance policies of the two projects predict the risk of a pandemic. Especially for Attiki Odos, which was one of the first concession contracts, they state that the insurance for the risk of a pandemic was not foreseen in the original contract. However, it was later added when the contract was renewed, with the exception of the AIDS pandemic. In similar insurance policies abroad, they point out that the insurers covered the compensation.
Based on estimates, Attiki Odos lost 25% of its revenues during the first period of the pandemic due to COVID-19 containment measures and severe traffic restrictions, while for last year on average the reduction is estimated at 10%.
They will earn the money
Confident that they will earn the money they claim from both the Greek State and the insurance companies, executives who are close to the concession company of the road axis of Attiki Odos appear.
These executives make it clear that this money will be earned and paid in full to the company and consequently to the shareholders of Attiki Odos SA.
Revenue during the period of the pandemic
Of particular interest is the picture of the financial results of Attiki Odos for the period 2020 – 2021.
In 2020, Attiki Odos generated revenues from the operation of the motorway of 151.5 million euros compared to 192.7 million euros in 2019. Profit before tax, financial, investment results, and depreciation have fallen to 106.2 million euros from 134 million euros, profit after tax is 48.7 million euros from about 72 million euros, while profit before tax is 63.3 million euros from 91.5 million euros.
Despite the lower traffic, the cost of sales of Attiki Odos appears high, compared to the turnover, as it stands at 90.7 million euros from 98.7 million euros. In the case of Attiki Odos, the cost of sales is none other than the costs for the maintenance of the road, which are deducted from the revenues, a practice that as revealed by Data Journalists is the largest contract scandal signed in the country.
Also, the revenues from the use of the motorway in 2021 reached 176.77 million euros compared to 151.5 million euros in 2020. Profit before taxes amounted to 71 million euros from 63.29 million euros in 2020, while after taxes to 56.3 million euros compared to 48.75 million euros.
Even in that year of the pandemic, the Board of Directors of Attiki Odos distributed as a dividend the amount of 82.6 million euros.
Also, the revenues from the use of the motorway in 2021 reached 176.77 million euros compared to 151.5 million euros in 2020. Profit before taxes amounted to 71 million euros from 63.29 million euros in 2020, while after taxes to 56.3 million euros compared to 48.75 million euros. Equity amounts to €177.4 million while cash amounts to €104.9 million.
The Board of Directors approved a dividend for 2021 of approximately EUR 84.4 million or EUR 35.67 per share.
