| Fri 23 Oct 2009, 11:08 | | AEG - Aveng Limited - Chairman`s announcement |
|
AEG
AEG
AEG - Aveng Limited - Chairman`s announcement
AVENG LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 1944/018119/06)
ISIN: ZAE000111829
SHARE CODE: AEG
("Aveng" or "the Group")
CHAIRMAN`S ANNOUNCEMENT
In spite of tough trading conditions, The Aveng Group is managing its current
portfolio to generate and extract value for shareholders through its focus on
margin improvement and growth in areas where market opportunities exist.
In the South African environment, the market is still being affected by delays
in contract awards, particularly in the public sector. Grinaker-LTA has won a
R350 million contract to build the Mitchell`s Plain Hospital in the Western Cape
as well as the Chimneys and Silos for the Medupi Power Station in joint venture,
with its share of the contract valued at R320 million. The operating group was
also granted an extension of its contract at the Two Rivers Platinum Mine in
Steelpoort valued at R360 million.
Moolmans has secured an opencast gold mining contract with a two year term at
Sadiola in Mali.
McConnell Dowell has been awarded several contracts during the quarter including
a R420 million contract for the construction of marine facilities on the Sino
Iron Project in Hong Kong and the Singapore International Cruise Terminal on
Jurong Island.
Notwithstanding the tight market conditions, the Group`s two year order book at
30 September 2009 increased to R31,3 billion compared to R30,4 billion at 30
June 2009. Aveng continues to pursue opportunities in its total project pipeline
which remains stable at R100 billion.
Volumes in the Manufacturing and Processing cluster have stabilised while
average steel prices have risen by some 10%. However its comparative performance
in the first half of the 2010 financial year is expected to reflect the current
tougher trading environment, compared to the first half of 2009, when demand was
still buoyant.
The continued relative strength of the Rand against other currencies is of
concern and will negatively affect foreign earnings when translated to Rand,
particularly in McConnell Dowell and Moolmans.
The Group`s strong balance sheet and positive cash balances ensure its position,
both defensively and for growth.
23 October 2009
Sponsor:
J.P. Morgan Equities Limited
Date: 23/10/2009 11:08:01 Produced by the JSE SENS Department.
The SENS service is an information dissemination service administered by the
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or
implicitly, represent, warrant or in any way guarantee the truth, accuracy or
completeness of the information published on SENS. The JSE, their officers,
employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature,
howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
