Encouraging results for Salini Impregilo
By Thomas Allen18 May 2017
Salini Impregilo has recorded that it received US$2.45 billion of new orders in the first quarter of 2017, 50% of which was contributed by one of the company’s US subsidiaries, Lane.
In terms of sector breakdown, there were two main contributors – the roads and highways sector represented 40% of the new orders while the civil and industrial sector represented 34%.
Geographically, 50% of new orders came from the US, 39% from the Middle East and 11% from Italy.
According to Salini Impregilo, the infrastructure market in Europe continues to show a positive growth trend. It said France’s economy was looking more stable following the electoral vote – which boded well for the recently announced upsurge in infrastructure spending – and there was the prospect that infrastructure growth would accelerate in Northern Europe as a whole over the next few years.
The prospect for growth in the US infrastructure market also appeared to be promising for the company, with the current US Administration taking a favourable approach towards infrastructure investments.
The Middle East was considered by Salini Impregilo to be characterised by two extremes: on the one side, war in Syria and Iraq, and on the other, spending on ultra-modern projects in the Gulf Countries. Milestone projects in the upcoming years included the Jeddah Tower – set to be the tallest building in the world – and the 2022 World Cup in Qatar.
After a period of subdued growth in Africa – as a result of declining commodity prices – Salini Impregilo said the region was now beginning to recover. Most of the group’s activity is concentrated in Ethiopia, where it is working on some large dam projects.
One of the most interesting markets for Salini Impregilo was said to be Australia, where the government has committed to delivering over US$83 billion in infrastructure funding and financing over the next ten years.
Latin America was said to be challenging, though efforts were being made to restore confidence, and a number of infrastructure investment opportunities were emerging.
Tenders awaiting outcome were said to be in excess of US$10 billion, including US$0.78 billion of best offer bids.
The company said that the market outlook and business evolution expected for 2017 confirmed its targets for the year ahead.