Salini Impreglio's first results

First quarter revenues for the recently-merged Italian contractor Salini Impregilo are said to reflect the positive effects of the production of several large projects.

The group has posted its quarterly earnings as a unified business for the first time, following its merger on 1 January, 2014.

The new Salini Impregilo organisation showed revenues of €859.0 million for the first quarter for 2014, compared to €809.2 million posted by the Salini Group along for the first quarter of 2013, a 6.2% increase.

Salini Impregilo said the increase in revenue was down to several large projects. However, these positive effects were partly offset by the temporary slow-down in production during the period in a few large projects in Venezuela and in the Panama Canal expansion works.

Earnings before interest, taxes, depreciation, and amortization (EBITDA) in the first quarter of the year totalled €88.3 million, up on Salini Group’s posted earnings of €83.9 million for the first quarter of 2013.

The consolidated operating result (EBIT) was €45.1 million, down from Salini Group’s €50.5 million for the corresponding period in 2013. According to Salini Impregilo, the marginal decrease in EBIT was down to the increase in depreciation and amortization linked to greater investment in plant- and equipment-related increased production in several projects.

The new contractor group also posted an order backlog of €28.2 billion, up marginally on the €27.7 billion posted at the end of 2013. Of that, €21.2 billion relates to construction projects. New orders signed during the first quarter of 2014 totalled €1.6 billion.

Notable contract wins for the quarter include a €1.1 billion contract for civil works on the Lima Metro in Peru; €185 million for work on the Brenner Base Tunnel project between Austria and Italy; and a 75% share in the €410 million contract for the Lietavská Lúčka to Dubná Skala motorway in the north of Slovakia.