Annual Financial Report for the period from 1st of January to the 31st of December 2012
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We mitigate such risks by applying high standards and taking measures in order to obtain and ensure their
availability, reliability, confidentiality and traceability. In addition and in order to control eventual hazards we
regularly invest in the upgrading of software, hardware and equipment and we conduct regular internal and
external audits supported by international consulting groups and we apply continuing progress procedures.
Risks relevant to EPC projects
The Group, via its subsidiary (ΜΕΤΚΑ), is exposed, in terms of contracts, to risks that are relevant to engineering
and electrical design, the supply, manufacturing and delivery of turn-key energy facilities against a determined
price. The aforementioned risks involve mainly cost overruns and/or delays in the implementation due to:
•
Unforeseen increases of the cost of raw materials and/or equipment
•
Mechanical failures or failures of equipment
•
Unforeseen condition during manufacturing
•
Delays due to adverse weather conditions
•
Performance failure or problems relating to suppliers and subcontractors
•
Additional works at the request of the customers or due to the customers’ delaying to produce in time the
necessary information for the design or the engineering of the project.
•
Unforeseen or unexpected changes relating to sociopolitical situations mainly in countries with political
and governmental instability
When additional time is required or when METKA Group incurs additional cost due to the customers’ liability,
METKA negotiates with such customers the eventual compensation.
The most valuable privilege of METKA Group is its human resources. As a result, being unable to retain such
resources or approach and retain new, suitably trained personnel that may allow to the Group to develop its
know-how could significantly influence in current or future performance.
METKA’s success in this field depends on the ability to recruit, train and retain a sufficient number of employees,
including high rank executives, engineers and technicians that have the appropriate skills and specialization.
Force majeur
Unforeseen events, including natural disasters, acts of war or terrorist attacks, non scheduled interruption of
the production operation/ outage, interruption of supply or incapacity of the equipment and/or of the processes
to meet the specifications may increase the cost and affect the Group’s financial results. Moreover, the Group’s
insurance terms in force may not provide sufficient coverage for the entire damage generated by such events.
Pendency of proceedings
The Group, mainly via its subsidiaries, has been involved in a number of cases against third parties, either
as complainant or as respondent. The outcome of such cases may involve expenses or revenues that can
significantly affect the results as well as the financial position of both the subsidiaries and the Group alike.
