Order book steady for Bouygues
By Sandy Guthrie31 August 2016
French-based Bouygues has reported that the order book for its construction businesses at the end of June 2016 was €29.5 billion – down 1% year-on-year, but up 1% at constant exchange rates.
The segment includes Bouygues Construction, Bouygues Immobilier and Colas.
The company added that its order book had yet to include the first €842 million tranche of the Monaco offshore extension project booked in July.
It said that in France, the gradual stabilisation of the construction market had been confirmed in the first half of the year. The order book for France at the end of June 2016 stood at €14.0 billion, up 3% on the figure at the end of June 2015.
Order intake at Bouygues Construction rose 29% in the first half of 2016 and included the conclusion of major contracts such as the Port of Calais extension, Tour Alto in La Défense and the renovation of the Louvre Post Office building in central Paris.
Residential property reservations at Bouygues Immobilier continued to grow strongly in the first half of 2016, it reported, with a figure up 22% year-on-year, boosted by the positive effects of the Pinel French tax incentive, wider access to a zero-interest loan programme since 1 January, 2016, and historically low interest rates.
Sales in Colas’ roads business in mainland France were said to have gradually stabilised in the first half of 2016, down 2% year-on-year after two years of sharp decline – 14% down in 2014 and 11% down in 2015.
In international markets, the group was said to have continued to benefit from solid and diversified positioning, with an order book of €15.5 billion at the end of June 2016, which was stable at constant exchange rates.
International business at the end of June 2016 accounted for 57% of the order book at Bouygues Construction and Colas.
Sales in the construction businesses reached €11.4 billion in the first half of 2016, down 5% compared with the first half of 2015 and down 2% like-for-like and at constant exchange rates.
Bouygues said sales had seen the negative impact of a scope effect of €200 million, of which €179 million at Colas linked to the sale or discontinuation of bitumen activities in Asia and France. There was also an exchange rate effect of €153 million, of which €65 million related to the depreciation of the Pound Sterling.
Current operating profit was reported to have reached €125 million, €37 million more than in the first half of 2015, mainly thanks to the discontinuation of activity at the Dunkirk refinery SRD (Société de la Raffinerie de Dunkerque).