France's Eiffage quarterly revenue jumps 7.3%, driven by concessions, contracting

By Dina Kartit

(Reuters) -French construction group Eiffage on Thursday posted a rise in third-quarter earnings, with a significant increase in concessions and contracting activities.

Building companies, which saw profits slashed under pandemic lockdowns and the resulting economic slowdowns, have since benefited from public investment in infrastructure and energy projects that aim to cut emissions and fuel costs.

The group's quarterly revenue rose to 5.2 billion euros ($5.07 billion), up 7.3% from the same period a year earlier.

Its third-quarter contracting activity grew by 8.5% compared to 2021 and stands at 4.2 billion euros, while concessions activity was up 2% year on year, at 952 million euros.

Eiffage became the largest shareholder of Channel Tunnel operator Getlink in late October with nearly 19% of the capital.

"This acquisition extends the duration of (Getlink's) portfolio while increasing its stake in a key player in transport decarbonisation in Europe," the group said in its quarterly earnings report.

Eiffage's energy division, which builds electric power lines, street lighting, solar farms and data centres, posted 1.28 billion euros in third-quarter revenue, up 12.9% year on year.

Revenue from motorway operator APRR, an Eiffage subsidiary, was 2.15 billion euros, up 12.6% year on year, with overall traffic up 11.9% as of Sept. 30 compared to the same period of 2021.

The company's order book stood at 18.8 billion euros at the end of September, allowing Eiffage to confirm its 2022 outlook for revenue and profit growth in the contracting and concessions segments.

($1 = 1.0256 euros)

(Reporting by Dina Kartit; editing by David Evans, Kirsten Donovan)