French construction and concessions giant Vinci is reporting a 10% increase in revenue, to €21.7bn, in the first half of 2019.
Its contracting business was up 9.9% across its three business lines – Vinci Energies, Eurovia and Vinci Construction – to €17.7bn.
The company said operating income from ordinary activities (Ebit) of €2.3bn was up 9.1% on H1 2018, while income attributable to owners of the parent of was up 4.5% to €1.4bn from the same period.
Vinci Construction’s revenue totalled €7bn (up 6.9% on an actual basis and up 6.1% like-for-like).
In France, 54% of the total, performance varied from one region to another, with strong business levels in the Paris region due to Grand Paris projects.
Outside France business levels rose in the UK, Central Europe and Africa (Sogea Satom), confirming an upturn seen in 2018.
However, contracting operating margin fell slightly due mainly to difficulties encountered by Vinci Construction on several projects and reduced business levels at certain subsidiaries operating in the oil and gas sector, although these negative factors were offset to a large extent by stronger earnings at Vinci Energies and Eurovia.
In specialty business areas, Soletanche Freyssinet and VINCI Construction Grands Projets performed well outside France, offsetting weaker activity in oil and gas-related businesses.
Xavier Huillard, Vinci’s Chairman and CEO, said: "In the first half of 2019, the Vinci Group had strong business momentum and delivered a further increase in earnings despite the high base for comparison. Free cash flow was positive, despite the seasonal variations in our businesses, which traditionally hamper cash flow at the start of the year.
"These good results confirm the strength of the Group’s integrated Concessions-Contracting business model, in which infrastructure concessions now account for a larger proportion."
In May, Vinci completed the acquisition of London Gatwick airport.
Image: A Vinci project, Vietnam’s first urban metro, Line 1 of Ben ThÃ nh – Suoi TiÃªn line in Ho Chi Minh City (Â© VINCI photo libraries and subsidiaries, DR)