Annual Report 2011 - Skanska

Årligt bedömt kassaflöde i Skanska Infrastrukturutvecklingsprojektportfölj per 31 december 2011 1)Mkr2 0001 500 Sjisjka wind farm, Gällivare, Sweden1 000Total investment: SEK 1.1 billionConstruction start-up: 2011500Height: 130 meters (427 ft.)0Turbine blade length: 50 meters (164 ft.)−500 Number of turbines: 302012 2015 2020 2025 2030 2035 2040 2045 2050Annual production: Estimated at 200 gigawatt hours,Inflöde: 22,0 Mdr kr (räntor, utdelningar och återbetalningar)equivalent to the annual electricity needs of about• Utflöde: −1,0 Mdr kr (framtida kontrakterade investeringar)43,000 households1) Kassaflödena är omräknade till valutakurserna per den 31 december 20113 0002 500Harnessingmountain breezes2 0001 5001 0005000−5002011 20152020202520302035204020452050Estimated annual cash flow in Skanska InfrastructureDevelopment’s project portfolio, December 31, 2011 1SEK M2,000200015001,50010001,00050050000−5002012 20152020202520302035204020452050-5002012 20152020202520302035204020452050Inflow: SEK 22.0 bn (interest, dividends and repayments)• Outflow: SEK –1.0 bn (contracted future investments)1 Cash flows have been translated into SEK at the exchange rates prevailing onDecember 31, 2011CompetitorsBalfour BeattyACSVinciSEK 4,593 M on the divestment of the Autopista Centraland Antofagasta highways in Chile. During the year,Skanska also sold the Midlothian Schools in the U.K.The very good outcome of the Autopista Central divestmentwas equivalent to about SEK 11 per share andresulted in an extra dividend of SEK 6.25, which wasdisbursed in May 2011.OutlookPolitical turmoil and the government financial situationin many countries will probably continue to affectdecision-making related to public sector investments.The British market is expected to remain affected bygovernment budget austerity during 2012.In the Nordic countries, the potential for new projectsis expected to increase, for example in the constructionof wind power facilities.North America offers continued expansion potential,but at a slow pace. A number of U.S. states are planningpublic-private partnerships related to highway projects,but it is uncertain when these may materialize. In LatinAmerica, there is major potential in the PPP market forhighways and energy facilities.Future PPP solutions in the Czech Republic andPoland primarily involve new highway projects.Renewable energy is a new niche in Skanska’s GreenInitiative. After green offices, hospitals and homes,now Skanska is harnessing green energy in the form of windpower. In 2012 the mountain breezes in Sjisjka near Gällivare,Sweden – north of the Arctic Circle – will start to spin 30 turbinesnow under construction.Skanska Infrastructure, the O2 wind power company and theSwedish power network Jämtkraft are jointly developing theSjisjka wind farm.The conditions are optimal. Nearly constant winds sweep infrom Norway and the Atlantic. The average wind speed is7.2 meters per second (16 mph), which is quite sufficient sinceonly 3 meters per second is required to generate power.The 30 wind turbines will generatean estimated 200 gigawatthours per year, equivalent to the annual needs of some 43,000households.The turbine blades measure 50 meters (164 ft.). Including thetower, the total height of each turbine will be 130 meters (427 ft.).The wind exerts large forces when it blows, which is why theturbines must be firmly anchored to the ground. To minimizeconstruction work in the mountains, Skanska Teknik designedturbine foundations that are poured in a factory and shipped to theconstruction site. Each foundation consists of sixteen large concreteelements, in which the quantity of concrete has been sharplyreduced compared to site-poured foundations.During 2011 preparatory work was carried out, and severalfoundations are on site. Beginning in the spring of 2012 thefoundations, towers and turbines will be assembled. During theautumn, test runs will begin.Construction work is being performed by Jemtska, a consortiumof Skanska Sweden and Jämtkraft. Skanska InfrastructureDevelopment has a 50 percent ownership stake in the project.Skanska Annual Report 2011 Infrastructure Development 67