Skanska boosts income in 2016

Revenue at Swedish-based construction group Skanska amounted to SEK151.3 billion (€16 billion) for 2016, with revenue, adjusted for currency effects, decreasing 1%.

Operating income was SEK8.2 billion (€1 billion) and, adjusted for currency effects, operating income increased by 27%.

Order bookings in construction amounted to SEK170.2 billion (€18 billion). Adjusted for currency effects, order bookings increased by 40%. The order backlog amounted to SEK196.3 billion (€21 billion).

Skanska UK’s construction business recorded a profit of £35.1 million (€41 million) in 2016 on revenues of £1,678 million (€1,947 million). This was said to equate to an operating margin of 2.1%. During this period, £1,800 million (€2,088 million) of orders were booked by Skanska UK.

Mike Putnam, Skanska UK’s president and CEO, said, “I am pleased to report a 17% increase in revenue for 2016. Operating margin is still firmly in the top tier of the sector, despite a small decline as the result of a challenging business environment.”

Meanwhile, Skanska has signed a contract with AMF Fastigheter to construct a new building for commercial and office premises in central Stockholm, Sweden. The contract is worth about SEK1.2 billion (€130 million), which will be included in order bookings for Skanska Sweden for the first quarter of 2017.

The project includes demolition of the existing building, ground improvement and new construction of 12 floors totalling 44,000m².

The new building will meet high sustainability standards and aiming for Platinum certification, the highest level of the LEED C&S environmental certification system. Great emphasis will be placed on logistics, security and the adjacent mall will be kept open during construction.