Polish contractors listed on the Warsaw Stock Exchange (WSE) have shown negative profitability for the fourth consecutive quarter, according to a report by research company Spectis. The aggregate net profit of the 22 contractors listed on the WSE came to a total of PLN170 million (€39.58 million) in the third quarter of 2018. Although this compares to net profit of PLN162 million (€37.72 million) registered in the corresponding period of 2017, it was said that the positive performance did not mean that the construction industry's financial standing was robust because the companies usually deliver positive results in the third quarter of the year. According to Spectis, the sector's actual performance is more accurately reflected by a 12-month rolling total, revealing a net loss of PLN281 million (€65.42 million) between the fourth quarter of 2017 and the third quarter of 2018. The only good news was said to be that the aggregate loss for the companies in question remained flat. Within the construction and real estate sector, contractors were said to be the only group to post losses. The results of property developers and suppliers of building materials and construction equipment have remained stable. This divergence was attributed to the fact that, unlike suppliers and property developers, contractors have limited scope to pass on rising costs to their final customers, the contracting authorities, because this can often lead to the cancellation of tender procedures.
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