Eiffage regains its 2019 rhythm

In the first half of the year, the group, number 3 in France in the construction industry behind Bouygues and Vinci, posted a net profit of 260 million euros, whereas it had lost 8 million in 2020. Its performance was 30 million euros lower compared to 2019, a "particularly dynamic year in all businesses", recalls Eiffage in a press release.

Over the past five years, only 2019 has done better in terms of net income.

Turnover stood at 8,7 billion euros, up 1,9% compared to 2019. It rebounded by 25,8% compared to the first half of 2020, including fall had been linked to the consequences of the measures against Covid-19.

Eiffage's two main branches of activity, construction sites and motorway concessions, are however experiencing different dynamics.

Driven by "a historic order book at the end of 2020", the "works" branch exceeded its 2019 level. It was driven by infrastructures and the "Energy systems" branch, while construction is down compared to its level from 2019.

At the end of June, the order book was down 3%, but still ensured 13 months of activity at Eiffage.

The group remains "vigilant" on the cost and supply of materials, where the situation is less worrying than at the beginning of the year, as well as on that of labor, explained during a conference for analysts Benoît de Ruffray, the CEO.

"We must be careful not to take too many activities" from construction sites and "not to succeed in putting the teams behind: we are therefore more selective" in the search for contracts, he continued.

Unlike the work, "the concessions continued to be affected by travel restrictions," the group noted in the press release. Traffic on the APRR motorways is still down by 17,1% over two years.

For the rest of the year, the group does not think it will be able to achieve the same operating profit as in 2019, despite "a significant increase", compared to 2020.

In addition, Eiffage announced its decision to become the sole shareholder of A'liénor by making use of its right of first refusal on the 35% of the capital of A'liénor held by Sanef. A'liénor is the concessionaire of the A65 motorway which connects the Gironde and the Pyrénées-Atlantiques.

The amount of the transaction, which also includes the acquisition of 100% of the operator, Sanef Aquitaine, amounts to 222 million euros, financed by Eiffage's available cash. "The co-shareholder of A'liénor was seller, and we seized the opportunity. Then, it was important for us to also take control of the operating company" explained Mr. de Ruffray.