GCC metro deals to boost Spanish firm's recovery
FCC expects revenue boost from involvement in Riyadh and Doha projects
Spanish construction firm FCC said that recent contract wins on GCC metro projects in Riyadh and Doha should play a key role in its bid to recover from sizeable losses.
Last year, the company led a consortium that won an $8.46bn (€6.3bn) contract to build three lines of the Riyadh Metro, while in March of this year it led another consortium that won a $335.8mn (€250mn) deal to build one of the Doha Metro subway lines.
FCC has already made some progress in addressing its recent financial troubles, with losses cut by 91% year-on-year to $71mn (€52.7mn) in the first half of 2014.
However, the building and public works group said revenues had declined by 3.7% to $3.99bn (€2.97bn) in the first half of the year as income from construction activity plunged by 14.5%.
The company’s home market of Spain, which has experienced a massive downturn in construction activity since the 2008 global financial crisis, saw group sales fall by 5.3%.
FCC said, however, that this slide in Spain will be gradually offset as international activity increases “in the short term” with the commencement of the Riyadh contract (along with another contract for metro work in Lima, Peru) in the second half of 2014.