Skanska ‘solid’ as it heads into 2022

By Leila Steed03 February 2022

Swedish construction giant publishes its full year financial results for 2021

Skanska’s headquarters in Stockholm, Sweden. Image courtesy Skanska

Skanska has reported a 7% drop in its yearly revenues for 2021, bringing in a total of SEK147.6 billion (€14.2 billion) for the year.

While the revenue decrease, which when adjusted for currency effects amounts to a 4% decline, reflects the “lagging effects from the pandemic”, Skanska said its “selective approach, strong commercial management and local expertise” had enabled it to successfully manage the challenges of the past year.

“As a result, the profitability continued to improve across our operations,” the company said.

In Skanska’s official fourth quarter financial publication for 2021 (subtitled ‘Showing strength in times of uncertainty’), Anders Danielsson, the company’s President and Chief Executive Officer, said, “We ended 2021 with a strong fourth quarter, especially in our Construction and Commercial Property Development operations where profitability was solid.

“Looking at the full year 2021, all Construction units showed strength, Residential Development increased both volumes and profitability in all our markets, and Commercial Property Development started high-quality developments at record levels and realized attractive gains.”

Skanska’s construction business segment, which represents about 49% of the company’s operating income, saw a 6% increase in order bookings for the year.

According to the company, this was driven by higher order bookings in the US and large infrastructure projects elsewhere in the world.

Between October and the end of December last year, the construction segment secured order bookings worth SEK42.3 billion (€4.1 billion).

Major projects secured in the quarter included a bridge, a casino and a pharmaceutical manufacturing facility in the US, and work to the Nordic Metro in Sweden. 

Additionally, the company said, “order bookings in the comparable period include the SEK13.9 billion order booking of the high speed rail in the UK,” adding that, “On a rolling 12-month basis the book-to-build ratio was 116 percent.”

Looking ahead, Danielsson said, “During the year, we further developed our strategy and at year-end, we launched a strategic direction that builds on the path we are on.

“With our strong financial position and clear organizational structure, we will continue to expand our Commercial Property Development operations, be a leading residential developer and further improve profitability with responsible growth in ourConstruction operations.

He added, “In 2022, we will introduce a new business stream within the Group, Investment Properties. It will further strengthen our commercial foundation through additional value creation and durable cash flow by building up a portfolio of Swedish office properties over time.”

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