(AOF) – Traffic at Vinci Autoroutes recorded a contraction of 1.4% in August, including a decline of 1.4% for light vehicles and a drop of 1.8% for heavy goods vehicles. “This is explained in particular by weather effects that are generally unfavorable for light vehicles (episodes of severe heat waves),” specifies the construction and concessions group. Cumulatively over the first eight months of the year, traffic for all vehicles remains increasing (+1.2%) “despite high fuel prices and negative calendar effects for heavy goods vehicles”.
It is up 1.6% for light vehicles and down 1.1% for heavy goods vehicles.
Continuing from previous months, passenger traffic at airports managed by Vinci Airports continued its positive dynamic in August. It rose 21.1% in August and 31.1% year to date compared to last year. Over the first 8 months of the year, it remains 7.5% lower than its 2019 level.
Passenger traffic reached 96.4% of its 2019 level. Excluding Asian airports, it increased by more than 2% compared to its pre-health crisis level.
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Key points
World leader in construction born in 1898 and involved in motorway and airport concessions;
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Revenues of €61.7 billion, of which 55% were generated internationally, distributed between construction for 47%, energy for 36%, motorway and airport concessions for 15% and real estate;
– Economic model: “design, finance, build and manage infrastructure and equipment for mobility” with complementarity between concessions and contracting;
– Open capital (employees with 9.9% of the capital and Qatari Holding with 3.8%), the board of directors of 15 members being chaired by Xavier Huillard also general director;
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Debt-free balance sheet, with €19.7 billion in cash and record free self-financing of €5.4 billion.
Challenges
– Growth strategy based on 3 pillars:
– in concessions, extension of the maturity of the portfolio and growth of the airport sector through external growth,
– in contracting, priority to Vinci Energy via acquisitions and to the specialized activities of Eurovia and Vinci Construction,
– synergy of concessions & contracting expertise in infrastructure projects;
– Innovation strategy organized by profession, with a budget of €50 million financing 50 programs from 12 research centers and focused on urban mobility and sustainable cities,
– partnerships with Paris-Tech (Research & environment lab), Fabrique de la Cité, etc.;
– “Ambition 2030” environmental strategy aiming for carbon neutrality in 2050:
– intermediate objective of reducing the carbon footprint by 20% in 2030 vs. 2019;
– circular process systematizing recycling and reuse in each sector,
– “avoid, reduce, compensate” approach for “0 net loss” of biodiversity,
– launch of the first green loan,
– participation in the global decarbonized hydrogen infrastructure fund;
– Dynamism of Vinci Energies, supported by acquisitions, particularly in IT in Central Europe;
– Order book of 57.3 billion, including 68% internationally
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Challenges
– Reduction in the disparity in margins between motorway concessions (2/3 of operating profit) and construction;
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Strong ambitions for Cobra IS, specialist in energy infrastructure for solar and wind energy -15 GW in the medium term of capacity, particularly in Latin America with commissioning in 2023 from 1
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photovoltaic project and construction of 1.4 GW renewable energy projects;
– Impact on profitability of the 30% stake in the Mexican OMA airport (23 million passengers in 2022);
– After a 25% increase in billings, 2023 objectives of a further increase in revenues and an operating profit slightly above the 2022 level:
– motorways: traffic of the same order as that of 2022;
– airports: passenger traffic lower than 2019 level and increase in operating income,
– VINCI Energies: new growth in activity and reinforced operating margin,
– VINCI Construction: selectivity of business intake, stabilization of activity and further improvement in operating margin;
– 2022 dividend of €4 after deposit and share program.
Learn more about the BTP/Construction sector
Double penalty for the sector
The French Building Federation (FFB) recently warned of the collapse of the new housing market. Over the first eight months of 2022, sales in the new home market in the diffuse sector collapsed by 26.8% year-on-year. As for sales of new homes in the grouped sector, sales to individuals fell by 17.3% year-on-year in the first half, while sales to institutions fell by 23%. The trend is the same for collective housing sales, down 9.8%.
These bad trends are accompanied by a decline in public investments, while PGE reimbursements begin. Due to a lack of visibility, local authorities prefer to put certain projects on hold. They also have to face a drop in their resources and a significant increase in energy and works costs. However, the largest investments are generally made during the third and fourth years of mandate of communities, that is to say in 2023 and 2024. This therefore represents a significant shortfall for the sector.