During the first nine months of 2023, UAB Merko statyba signed new construction contracts worth more than 242 million euro

During the first nine months of 2023, UAB Merko Statyba signed new contracts for more than 242 million euro. This number is nearly six times higher than the total value of contracts signed during the same period last year, which amounted to 42.8 million euro.

“This year, compared to previous years, we‘ve seen significant activity in the engineering infrastructure and renewable energy sectors. It can be said that part of the projects planned for 2022, which were affected by the war in Ukraine started by Russia and the subsequent sharp rise in commodity and energy prices, have shifted to this year when investors have reassessed the market situation and construction cost levels have stabilised somewhat,” commented Saulius Putrimas, Head of MERKO in Lithuania.

The total value of signed contracts is record-breaking

UAB Merko Statyba has signed construction contracts this year with a combined value of 242 million euro. These include contracts for infrastructure required for the NATO Ultra High Readiness Joint Task Force, design and construction works in Pabradė, transformer substations for wind farms, and wind farm construction in the Kelme and Pagėgiai regions.

According to the company, all these contracts are the result of long and consistent work, demonstrating the experience and professionalism of the entire MERKO team. More than half the contracts signed this year are from the renewable energy sector.

“UAB Merko Statyba installed the foundations for the first wind turbines for the customer GE Wind Energy’ GmbH back in 2015. Now we have installed foundations for more than 100 wind turbines, which have already been built and produce sustainable electricity, helping to ensure energy security and reduce the import of fossil fuels. According to the contracts already signed for this year, foundations will be installed for more than 84 wind turbines, creating additional infrastructure for other wind farms – more than 50 km of roads have been constructed and reconstructed, and electric cable lines and substations have been installed,” Putrimas commented on the work in the energy sector.

UAB Merko Statyba achieved a turnover of 54 million euro from general contracting contracts in the first nine months of 2023, similar to the same period last year, which amounted to 56 million euro. The company plans to finish 2023 with a turnover exceeding 100 million euro as construction work under the newly signed contracts has already begun.

Apartment sales increased by 40% compared to last year

Additionally, the company is continuing work on its own project, Vilnelės Skverai residential complex located in Markučiai near the Old Town, between Užupis and Belmontas, in the territory of the conversion project Architecture Park initiated by Vilnius City Municipality. The homes in the Vilnelės Skverai quarter, consisting of two phases, have been completed and almost all of the 450 apartments have already been sold. Currently, construction is underway for another phase in Kaukysa.

During the first three quarters of this year, preliminary purchase and sale agreements for 129 apartments were concluded, which is a 40% increase compared to last year, when 92 such agreements were signed.

According to the head of MERKO in Lithuania, this demonstrates that high-quality residential buildings constructed in attractive locations continue to attract buyers’ attention.

“Unfortunately, we are currently unable to offer high-quality, energy-efficient housing in other locations in Vilnius due to the extended process of project coordination and building permits, even though we acquired the land for development back in 2021,” said Putrimas.

The results for the first three quarters of this year, according to the spokesperson, reflect their ability to manage continuously increasing risks and diversify MERKO’s activities.

“We invest in residential housing projects, work as contractors, have public and private sector partnership projects, and build wind farm parks. Such a broad specialisation not only helps us successfully find customers for various construction and design work but also makes it easier for us to deal with the challenges that have become particularly numerous during this period of high uncertainty,” Putrimas summarised.