Positive trends confirmed at Vinci
By Sandy Guthrie03 November 2017
Revenue in the first nine months of 2017 at the French-based Vinci group was up 5.6% compared to the same period last year to €29.2 billion, confirming the positive trends seen since the start of the year, it said.
It reported that its three contracting business lines – Vinci Energies, roads specialist Eurovia and Vinci Construction – achieved further business growth, “confirming the upturn in France and good overall performance elsewhere”.
Vinci said that during the third quarter, it had continued to pursue its strategic aims as part of its concessions-contracting business model.
It said that international development accelerated through new acquisitions, by Eurovia in Germany and Latvia, and Vinci Construction in Australia.
It said the South Europe Atlantic high-speed rail line connecting Tours and Bordeaux in France had come into service on 2 July, 2017, one month ahead of schedule, and generated its first revenue. This was said to be the largest project ever undertaken by the group, and the infrastructure will be operated by Vinci and its partners under a 44-year concession contract.
Vinci added that the strong performance in the first nine months of 2017 supported its previous guidance for the full-year 2017 – growth in revenue, operating income and net income.
The contracting business revenue was €23.56 billion, which was up 3.8% on an actual basis, or up 3.4% like-for-like, and included €10.05 billion from Vinci Construction – a rise of 2.8% on an actual basis, or up 3.4% like-for-like.
In France, Vinci Construction’s revenue was €5.23 billion – up 3.8% actual, up 3.2% like-for-like. The group said that this increase confirmed the resilience of the residential building market, particularly in the Paris region, and the improvement in the civil engineering market.
Outside France, revenue totalled €4,816 million – up 1.7% actual, up 3.5% like-for-like. It said growth at Soletanche Freyssinet, Entrepose (Spiecapag) and in the Asia-Pacific region offset lower business levels at Vinci Construction UK, Sogea-Satom and Vinci Construction Grands Projets.
Vinci Construction’s order book at 30 September, 2017, amounted to €17.4 billion, up 8% over 12 months. It represents almost 15 months of Vinci Construction’s average business activity.
Revenue of €5.87 billion was reported for Eurovia, up 5.8% on an actual basis, or up 6.0% like-for-like.
In France, revenue was €3.32 billion – up 6.2% actual, up 6.0% like-for-like. After several years of recession, the upturn in traditional roadworks markets was confirmed in the third quarter, said Vinci.
Outside France, revenue totalled €2.55 billion – up 5.4% actual and up 5.9% like-for-like. Business levels were said to be buoyant in Germany, Poland, Slovakia, the US and Canada.
Eurovia’s order book at 30 September, 2017, amounted to €6.1 billion, up 10% over 12 months, representing more than nine months of Eurovia’s average business activity.
Vinci launched Leonard, its group-wide platform dedicated to innovation and foresight, at the beginning of July.
Leonard’s three missions are to maintain a technology watch, focus on foresight and develop incubation and acceleration programmes for innovative projects for all Vinci businesses.