Thanks to PPPs, Vinci turnover exceeds €30 billion

Posted on February 29, 2008 by Matthieu Desiderio

French construction and concession world leading company Vinci announced its 2007 turnover reached €30.4 billion, up 17% from the year before. Operational results is also up 17% to €3.11 billion, and net benefits topped €1.46 billion (+14.4%).

Construction: one of Vinci best assets

Construction activities accounted for €13.7 billion turnover (+29%) and €668 million operational result (+35%). However, Vinci Construction (the division in charge of construction for Vinci Group) announced that level reached this year could be “too high” and may require to slow down a little bit to ensure the company remains capable of take on the contracts signed.

Order book is quite full for Vinci Construction and companies officials kind of wish that it stabilizes a little bit in the next few months. As of December 31, 2007, order book toped €21.5 billion (+20% compared to 2006) and Vinci expects a 2008 growth of around 10%.

An important growth from PPP activities

In the concessions business, Vinci Concessions (the division in charge of concessions for Vinci Group) announced a turnover up 6.7% to €4.6 billion; operational result reaches €1.7 billion, up 10.5%.

Growth in this sector comes from new highways sections that have been opened this year: for example, a new segment of the A89 highway between Thenon and Terrasson (Autoroutes du Sud de la France network, ASF) completed the link between Bordeaux (southwest) and Clermont Ferrand (center). Also, automatic tolling development and better relationship between the three networks Vinci operates (ASF, Escota, and Cofiroute) allow the company to improve its EBITDA.

Vinci strategy in 2008 will continue with the same relevant model: the company will continue to provide construction and concession and is already engaged in couple projects worth €5.7 billion (of which €1.2 billion were directly invested by Vinci). PPP related activities and long term concessions agreements will probably ensure Vinci to keep its rank among other European construction and concessions companies.