Revenue rise for Salini Impregilo

Salini Impregilo has reported total revenues of €3.09 billion for the first nine months of 2014 – an increase of 7.0% on the €2.89 billion reported by the pre-merger Salini Group for the same period last year.

Shareholders approved the merger of Italian contractors Salini and Impregilo in September 2013.

The Salini Impregilo group said that the increase in revenues in the first nine months of 2014 was a reflection of several large projects, including work in Ethiopia, Denmark and the Middle East (Metro Riyadh and Red Line), as well as the resumption of several projects in Italy.

It said total operating costs amounted to €2.79 billion, up from €2.63 billion last year. The group’s headquarter costs amounted to €103.1 million, which it said was a reduction of roughly 14% compared to its 2014 budget, including the first effects of synergies projected in its 2014 to 2017 business plan.

An increase of €157.2 million in operating costs was said to be directly related to the increase in production and to be a sign of improvement compared to the same period in 2013.

In the first nine months of 2014, EBITDA (earnings before interest, taxes, depreciation and amortization) amounted to €299.8 million compared to €255.9 million last year, with an EBITDA margin of 9.7% (8.9% in the first nine months of 2013), which the group said was in line with its year-end target of 10%.

It said that profitability for the third quarter, at 10.9%, showed significant growth. This led to an increase in profitability over nine months, compared to a first half figure of 9.1%.