https://www.miningweekly.com
Africa|Aveng|Building|Business|Construction|Cummins|Financial|Gas|Infrastructure|Mining|Moolmans|PROJECT|Projects|Equipment|Infrastructure
Africa|Aveng|Building|Business|Construction|Cummins|Financial|Gas|Infrastructure|Mining|Moolmans|PROJECT|Projects|Equipment|Infrastructure
africa|aveng|building|business|construction|cummins|financial|gas|infrastructure|mining|moolmans|project|projects|equipment|infrastructure

Aveng expects to deliver earnings per share profit at financial close

12th August 2024

By: Darren Parker

Creamer Media Senior Contributing Editor Online

     

Font size: - +

Construction and mining group Aveng has alerted shareholders that they can expect an earnings a share and headline earnings a share profit for the financial year ended June 30, compared with the loss a share of A$0.82 and headline loss a share of A$0.62 reported for the 2023 financial year.

Aveng, which plans to issue another trading statement with more detailed earnings figures in due course, delivers its projects through three operating brands in three distinct segments.

The infrastructure segment, branded McConnell Dowell, operates in Australia, New Zealand, the Pacific Islands and Southeast Asia.

McConnell Dowell is expected to report a positive performance for the year, with improved operating earnings, even after accounting for the loss associated with the Brunei liquefied natural gas project in Southeast Asia in 2023. This is further supported by continued strong liquidity and cash flows.

However, work-in-hand has reduced owing to the timing of larger infrastructure project awards, particularly government-funded projects.

Meanwhile, Aveng’s building segment, branded Built Environs and operating in New Zealand and the Australian states of Victoria and South Australia, is expected to report increased revenue and improved operating earnings compared with the prior year.

The growth in revenue reflects the business unit’s growth agenda, enabling it to operate at scale across its three regions. Aveng noted on August 12 that work-in-hand has come off peak levels but remains at “comfortable levels” to maintain similar revenue levels going forward.

Lastly, the mining segment, branded Moolmans, operates in South Africa. The group expects Moolmans to report marginal operating earnings for the year.

Operating margins remain under pressure, primarily as a result of the five-year contract with manganese miner Tshipi é Ntle.

Aveng mentioned that other mining clients have been negatively impacted on by infrastructure constraints, leading to reduced work-in-hand. Moolmans is currently in discussions with existing clients on opportunities to redeploy equipment to support increased volumes.

In terms of group liquidity, Aveng expects to report both an improved cash balance and a net cash position of A$173-million. Current debt comprises asset-backed finance, predominantly at Moolmans.

Additionally, previously reported term debt at McConnell Dowell was settled during the year.

Following the appointment of Scott Cummins as group CEO in March, the board directed management to conduct a detailed review of the corporate strategy for the group.

Aveng stated that the objective of this review is to explore options available to Aveng and its subsidiaries to enhance stakeholder value and maximise value to shareholders by ensuring the value of Aveng’s assets is fully recognised.

Aveng has appointed Macquarie Capital to assist with this strategic review.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

Comments

Showroom

Werner South Africa Pumps & Equipment (PTY) LTD
Werner South Africa Pumps & Equipment (PTY) LTD

For over 30 years, Werner South Africa Pumps & Equipment (PTY) LTD has been designing, manufacturing, supplying and maintaining specialist...

VISIT SHOWROOM 
John Thompson
John Thompson

John Thompson, the leader in energy and environmental solutions through value engineering and innovation, provides the following: design, engineer,...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Photo of Martin Creamer
On-The-Air (29/11/2024)
29th November 2024 By: Martin Creamer
Magazine video image
Magazine round up | 29 November 2024
29th November 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.059 0.097s - 128pq - 2rq
Subscribe Now