Russian property developer Samolet reported an 87 percent collapse in net profit for the first half of the year, as interest costs swamped gains from rising revenue.
Net profit fell from 1.2 billion rubles to 148.5 million rubles. Revenue under Russian accounting standards rose 31 percent to 8.6 billion rubles, with 8.5 billion of that coming from fees for guaranteeing the obligations of other group entities.
The company earned 9.9 billion rubles in interest income over the period but incurred 19.8 billion rubles in interest expenses.
Debt reached 250.1 billion rubles at the end of June, up from 238.4 billion at the start of the year. Borrowings exceed the company’s equity of 11.1 billion rubles by roughly 2,150 percent. Cash on hand fell 57.6 percent to 166.6 million rubles. The company also provided collateral covering loans, bank guarantees and other obligations totalling 1.4 trillion rubles.
Samolet shares hit a new low of 726 rubles in March, down more than 50 percent over the past year. The company listed at 950 rubles per share at its 2020 IPO.
