Vinci Construction at 90% of expected activity

Vinci said its Contracting division was now operating at approximately 90% of expected levels but social distancing measures were impacting on worksite productivity.

In a business update released in advance of its AGM today, the company said the situation had gradually improved since the second half of April, notably in France.

Its Contracting division includes VINCI Construction, Eurovia (road maintenance) and VINCI Energies (the utilities market).

Vinci said 2020 revenue and profits will be “very significantly impacted by the sharp drop in business levels during lockdown, especially in its airport and motorway concessions.”

It added that it could not reliably quantify the financial impact because of uncertainty about the return to normal production levels in its construction activities and the pace of the recovery in traffic at Vinci Autoroutes and Vinci Airports. A further update will be given at the end of July.

Its order book at 31 May 2020 was at an all-time high of €42.5 billion, representing a 17% increase both since the beginning of the year and over a 12-month period. International business represented almost 60% of the total. This includes two significant recent contracts totalling €3 billion on the UK’s HS2 high-speed rail project.

The group said it was responding to the pandemic and economic slowdown by strengthening its financial position. It has arranged an additional €3.3 billion credit facility, maturing in March 2021, and said its liquidity stood at almost €19 billion at the end of May, including net cash of €6.1 billion.