French giant returns to black in the first nine months of year

Operating profit at Bouygues鈥� global construction division rocketed 29% in the first nine months of 2019, boosted by a turnaround at the firm鈥檚 energy and services division.

The French contracting giant, whose UK construction arm is currently building Bristol鈥檚 tallest residential tower 鈥� a 26-storey block designed by Chapman Taylor 鈥� and is also working on the Hinkley Point nuclear power station (pictured) in Somerset, said its construction division鈥檚 operating profit rose over the first three quarters to 鈧�545m (拢467m) on turnover up 9% to 鈧�21.6bn (拢18.5bn), suggesting an operating margin of 2.5%.

hinkley point c

The firm put the improvement down to a strong showing by its energies and services division, which reported a 鈧�51m (拢44m) profit in the first nine months of 2019, after posting a 鈧�139m (拢119m) loss in the same period last year.

Recent orders for the firm鈥檚 global construction business include a 鈧�364m deal (拢312m) for excavation work on a 4km-long tunnel in Hong Kong and a 1.1km taxiway at Los Angeles international airport worth 鈧�75m (拢64.3m).

Total construction activity accounts for nearly 80% of the firm鈥檚 overall turnover.

Last month Bouygues鈥� UK business reported that it had plunged into the red in 2018, posting a 拢1.7m pre-tax loss on turnover down 24% to 拢452m.

Bouygues also owns TF1, one of France鈥檚 most-watched TV channels, plus a telecoms business.

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