Open Data Albania is researching on the Financial Performance of companies that implement concessionary contracts or Public Private Partnerships (PPP), year 2019. Financial Performance Indicators are part of the Company’s Financial Statements, they include Annual Income and Profit Before Tax.

For 2019, 249 PPP or concessionary companies have been active. There are also 14 PPP companies which are Suspended, 7 companies have the status of being Deregistered, while 2 are going through Liquidation.

Out of 249 active PPP concession companies, the Financial Statements have not been published according to the legal obligation, for 52 of them, mainly companies operating in the area of water works. In 63 cases, the activity and Annual Income were reported at zero value.

134 PPP concession companies have declared non-zero annual income and have published their financial statements. Their total revenues amount to 88.06 billion ALL, i.e. approximately 716 million Euros, or about 802 million USD.

The active companies that operated and reported through their Financial Statements in 2019, recorded a total profit before tax in the amount of 16.7 billion ALL (about 130 million euros).

The highest revenues in 2019 are recorded by Bankers Petrolium Albania 26.04 billion ALL. Albchrome, a mining company, ranks second by 7.6 billion ALL. The third -ranked company in terms of revenues is Tirana International Airport with 6.96 billion ALL.

The top-ranked company, Bankers Petroleum Albania, has had revenues in the amount of 26.04 billion ALL in 2019. This company is also ranked first among the PPP concessionary companies for 2019 in terms of Profit with 5.33 billion ALL profit before tax. The profit margin versus income is 20.47%. The company spent 1.62 billion ALL or 6.2% of its annual revenues for Human Resources in 2019. Bankers Petrolium Albania implements a contract for Development and Production of Hydrocarbons in the oil sources of Patoz-Marinza. The company was formerly called Saxon International Energy LTD-Albania Branch. The concessionary company operates as a subsidiary of the parent company which operates under the Cayman Islands Laws. The parent company (Cayman) is wholly owned by Bankers Petroleum International Limited, a US based company fully owned by Bankers Petroleum LTD in Canada. Its parent company is Charter Power Investment Limited registered in Hong Kong, which is owned by Geo-Jade Petroleum Corporation, with its seat in China.

The Concessionary Contract dates back to 2004 and has undergone changes and re-approvals in 2008 and 2014. The company reported revenues for the first time in 2006, the highest revenues were recorded in 2014 in the amount of 53.4 billion ALL. In 2019, it marked an increase of 7.2% compared to the previous year. A passport with information, data, visualization on financial performance and documents for this company, as well as the concessionary contract it implements, can be accessed in the Concessionary Register by Open Corporates Albania. The performance of Income and Profits in Years is also visualized there.

The second-top company is Albchrome, former Darfo, which  in 2019 recorded Revenues in the amount of 7.617 billion ALL. Although well-positioned in terms of revenues, Albchrome recorded a loss and not a profit before tax, of 786.78 million ALL. The company’s capital control package has changed several times. The agreement dates back to 2000, the company was fully owned by Darfo srl. On November 20, 2010, the name of the founding Partner of the company was changed from Darfo to ACR Holding in the National Business Center. In 2016, the owner ACR Holding sold its shares to Albrome Holding shpk, a company owned by Balfin Group Balkan Finance Investment Group. This company exploits the underground mines in Bulqiza, Përrenjas and Pojska in Pogradec, the Ferro-Chrome plants in Elbasan and Burrel, as well as the enrichment plant in Klos through a concessionary agreement.

The third-ranked company is Tirana International Airoport with annual revenues for 2019 in the amount of 6.96 billion ALL, implementing a contract signed in 2004 for the Construction and Operation, and Maintenance of Mother Teresa International Airport. The control saga regarding the package of shares of the company that manages Rinas Airport, dates back to Hochtief Airport GmbH with 78.7% of the capital and the Albanian American Enterprise Fund with 21.3% of the Initial Capital. Also in 2004 the company Deutche Investitions-und Entwicklungsgesellschaft mbH became a partner by buying 31.7% of the capital owned by the German Hochtief Airport GmbH. In 2016, the company partners agreed to sell the company to Real Fortress Private Limited, a company established and regulated by the Law of Singapore. The latest action transferred the ownership of the company for 71 million euros to Kastrati Group. The share purchase agreement dates December 2020. The company that manages Mother Teresa Airport has already renegotiated the agreement with the Albanian Government, gaining the right to use it for another 13 years, a total of 35 years, against an investment plan approved by law. The passport created for this concessionary company contains the complete history of the transfer of the capital controlling package, the legal framework for Agreements with the State, data on the Investment plan and all the other relevant documents. The company in 2019 recorded a profit of 3.1 billion or 44.64% of total annual revenues. Human resources recorded a cost of 908.9 million ALL.

Aleat company is ranked fourth in terms of revenues in 2019 with 5.6 billion ALL or about 48 million euros. This company ranks third in terms of profit for 2019. The company is contracted to produce and distribute passports since 2008. Its two owners are foreign companies, namely Idema Identity and Security France, formerly Sagem Securite, a company registered in France with 75% of the capital, and the Albanian American Enterprise Fund as a non-profit established under the laws of Delaware in the United States of America with 25% of the capital. The contract signed in 2008, was amended in 2010 and 2013 with extended Concession Terms. This company in 2019 recorded a satisfactory profit in the amount of ALL 2.27 billion, which is a profit margin against revenues of 38.03%.

Gjoka 87 is a concessionary company established by Gjoka Konstruction and implements the concession for the construction, operation and maintenance of Arbri Road, a contract signed with the Ministry of Infrastructure and Energy. The total revenues reported for 2019 were ALL 5.6 billion. During 2019, this company has benefited from the State Treasury payment in the amount of 3.4 billion ALL.

The Albanian Highway Concession established in 2016 has signed in September 2017 an agreement for the construction, improvement, operation and maintenance of the Milot – Morina highway for a 30-year term. Initially, the capital of the company consisted of local, Greek and UAE ownership. After its sale, the company now belongs to Salillari and Kastrati, two local companies. In 2019, the company recorded revenues in the amount of ALL 2.6 billion. The company has budget support and payments from the State Treasury.

Ayen AS Energji is a company ranked among the ten concessionary companies with the highest income in 2019, being the company with the highest level of income in the Energy sector. The company was established in 2011 with Turkish and Albanian capital. This company operates with five hydropower plants through contracts for Design, Construction, Financing and maintenance in Pëshqesh, Ura e Fanit, and Fang, Mirdita area. In 2019, the company recorded revenues in the amount of ALL 2.6 billion.

Integrated Energy BV SPV is ranked eighth among the ten concessionary companies with the highest revenues in 2019 with 1.7 billion ALL. According to its Financial Statements, the company has spent for Human Resources in 2019 the value of ALL 153.5 million and has collected in 2019 from the State Treasury ALL 1.07 billion. The company is owned by Geo Genix, a company registered in the Netherlands. The company implements a concessionary contract for the construction of a landfill, incinerator, rehabilitation of existing landfills in Tirana, and production of energy.

Devoll Hydropower was established in 2008 and since 2014 is owned by the Dutch company Statkraft Markets BV The company was previously owned by EVN AG and Statkraft AS. The concessionaire has entered into an agreement for the construction and operation of hydropower plants on the Devolli River. For 2019, Devoll Hydropower is ranked ninth with a total revenue of 1.6 billion ALL.

The company ranked tenth place for 2019 is the concessionary company S2 Albania with 1.5 billion ALL.  The company implements a PPP Contract for financing, establishing, and operating the scanning service for containers and other vehicles. The contract is signed in April 2013 and is amended twice during 2015 . The company S2 Albania is owned by an American company registered in the state of California, Rapiscan Systems INC and the Albanian company ISMS. This company recorded a profit before tax in the amount of ALL 274.7 million in 2019.

The ten companies with the highest Profit before tax for 2019 are Bankers Petrolium Albania; Tirana International Airport; Aleat; Durrës Container Terminal , EuronEnergy , SGS Automative Albania; S2 Albania; Alb-Energy; Concessionary Company Port MBM (Multi Buoy Mooring) and Diteko.

The active companies that operated and reported through their Financial Statements in 2019, recorded a total profit before tax in the amount of 16.7 billion ALL (about 130 million euros).

Durrës Container Terminal is one of the companies with high pre-tax profit, ranked fourth with 508 million ALL profit for 2019, implementing a 2011 contract for Management, Operation, Maintenance and technical improvement of the Container Terminal in the port of Durrës. The concession contract for this company was terminated by a decision of the Administrative Court of Appeal of Durrës. According to the decision, the reason for the termination of the contract is the non-fulfillment by the concessionaire of the obligations arising from this concession contract. The concessionary company is owned by Durrës Kurum Shipping for 99.9% of the capital package.

SGS Automotive Albania is ranked fifth in terms of profit before tax. The company implements a contract for Design, Financing, Rehabilitation, Testing, Use and Maintenance of Vehicle Technical Control Centers. During 2019, the company recorded a profit before tax of 294 million ALL. The profit margin stands at 30% of the year revenue. The company was founded in 2009 and is owned by the Swiss SGS Societe Generale de Surveillance.

ALB-Energy is another company that appears among the ten companies with the highest profit before tax, but not ranked the same when it comes to annual revenues 2019. The company recorded a profit in the amount of ALL 257 million with a high profit margin of 58.4% of annual income. The company was established with local capital and implements concession contracts in the hydropower sector.

MBM Port, the Concessionary Company implements a contract for Construction, Operation, Transfer of MBM port, Porto Romano. Profit before tax for 2019 is 255 million ALL. The company was established in 2015. Its founding partners were Adriatic Petroleum Platform for 97% of the capital and Salillari, ATEC srl, Mampaey Offshore Industries BV with 1% each. In 2019, the companies Mampaey and ATEC donated their shares to their partner Adriatic Petroleum, and two days later, Adriatic Petroleum sold its shares in favor of Adriatic Bay Investment Group shpk. Finally, the concessionaire is owned by Salillari with 1% of the capital and Adriatic Bay Investment Group with 99% of the capital, the latter is also owned by Kastrati Group.

Another concession for hydropower works ranks in the top ten in terms of profit before tax. Diteko with local capital with a profit of 234 million ALL.

The Annual Income consists of Income from Operating Activity plus Other Income from Branches, plus Company Investments and other Financial Income during the year.

Profit Before Tax is the difference between the total incomes of the company and its total expenses for the respective fiscal year. Tax expenses are not calculated here. The company can divide the profit in the form of dividends, or reinvest it.

Data on financial performance, legal personality, status, object, legal issues, financial management, public or private financing, concession fees and legal arrangements for concession companies are complete and published in well-structured formats in the Concessionary Register of the Open Corporates Albania portal. Dozens of analyzes and research on Concessions are also published on the Open Data Albania portal. The Concessionary Register and research articles are developed as part of the Open Data, Access and Transparency over sectors to Risk of Corruption Project.

Download excel: PPP Concession Businesses, Ranked by Income and Profit, Top 10 for the year of 2019
Comment and Analysis: Open Data Albania
Translated by: Etleva Kondakçi