| Tue 28 Aug 2001, 0:00 | | Aveng Limited - Mcconnell Dowell Reports Loss But |
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AEG ZAE000018081 AEGD ZAE000018099
Johannesburg - Tuesday August 28, 2001
As expected, Aveng Limited's Australian-subsidiary McConnell Dowell
Corporation today reports an operating loss of A$3,932-million for the six
months ended June 30, 2001. However the company reports that its work on
hand has increased to A$460-million, well up from the A$248,3-million six
months earlier, and the directors are confident of the company's future.
This loss which was predicted by Aveng in May will have little effect on the
results for Aveng which reports its results for the 12 months to June next
week.
McConnell Dowell is the Australian-based engineering and construction
company offering specialised building, heavy civil, mechanical and pipeline
construction services to a geographically diverse selection of quality
clients in which Aveng holds a 64% interest.
Because McConnell Dowell's work is of a contract nature, its profits tend to
be lumpy and taken as and when contracts are completed. In addition, in
the past 18 months McConnell Dowell has had to change its year end twice -
once when LTA Limited acquired the company and it changed its year end to
conform with that of LTA, and then again when LTA was acquired by Aveng and
McConnell Dowell's reporting period reverted to June in line with that of
Aveng.
McConnell Dowell's A$3,932-million operating loss compares with an operating
profit for the prior 18 months to December 31, 2000 of A$19,01-million and a
profit for the full year to June 30, 2001 of A$1,062-million..
Its sales revenue for the six month period was A$208,9-million compared with
A$509,6-million for the previous 18 month period. The net loss after tax
attributable to shareholders is equivalent to A$0,093 per share compared
with the A$0,457 per share for the prior 18 month period.
The McConnell Dowell directors report that the company has completed the
construction of the Tweed River Sand Bypass construction project and has
begun the 24-year operation and maintenance contract. In addition, the
US$19-million marine civil project in Taiwan for Alston Group at its Ho Ping
Power Station has now been commissioned.
As part of its A$460-million work in hand, McConnell Dowell is working on
four significant projects:
A US$70,5-million contract for an onshore gas processing terminal and
pipeline in Vietnam;
A US$34-million contract for engineering, procurement, supply and
construction of 20, 24 and 36 inch pipelines at the Tunu oil and gas field
in East Kalimantan, Indonesia;
A US$72-million contract to design and construct twin cable tunnels for
Powergrid Limited of Singapore in a 40% joint venture with Obayashi;
A 15,9-million pound sterling contract to construct a 30km gas pipeline from
Salmesbury to Helmshore for Transco of the United Kingdom.
In line with its improved order book and future prospects, the directors
have declared a final dividend of A$0,04 per share, payable on September 14,
2001.
SUMMARY OF MCCONNELL DOWELL'S PERFORMANCE
A$000 Six months 12 months 18 months
to June to June to
2001 2001 December
2000
Sales revenue 208 912 404 450 509 628
Other revenue 3 419 5 714 9 233
Deprecation and 5 508 10 476 16 191
amoritsation
EBIT (6 128) 547 23 284
Net interest revenue 434 515 567
Profit/(loss) before tax (5 694) 1 062 23 851
Abnormals -- -- --
Taxation 1 762 -- (4 838)
Outside equity interest -- -- --
Net profit/(loss) after (3 932) 1 062 19 013
tax attribtuable to
shareholders of McConnell
Dowell
Earnings per share (cents) (9,34) 2,52 45,7
Net assets per share $2,30 $2,30 $2,29
(whole dollars)
Please note:
Aveng Limited is a South African based construction-related group. It was
listed on the JSE Securities Exchange SA in July 1999 and is aiming to be a
globally competitive construction-related company focused principally on the
developing world.
Its major businesses are
Grinaker-LTA Limited - South Africa's largest construction company organised
into three divisions: Grinaker-LTA Construction and Development; McConnell
Dowell which is listed on the Australian and New Zealand stock exchanges and
in which Grinaker-LTA holds 64%, and Grinaker-LTA Engineering and Mining
Services. Aveng holds 100% of Grinaker-LTA.
Trident Steel (Pty) Limited - South Africa's second largest steel merchant.
Aveng holds 100% of Trident.
Alpha Limited - South Africa's second largest cement manufacturer. Aveng
holds 46% of Alpha and the Swiss group Holcim, one of the world's leading
suppliers of cement, aggregates and concrete, holds 54%.
Aveng's objectives are to
Achieve a PE rating in the top three of the BCE sector
Long-term real ROE of 10%
25% of earnings offshore by 2003
Visit our website - www.aveng.co.za
ends
ISSUED BY : PENELOPE GRACIE INVESTOR RELATIONS
ON BEHALF OF : AVENG LIMITED
FURTHER INFORMATION : PENELOPE GRACIE
CONTACT : OFFICE +27 (11) 447-3301
HOME +27 (11) 442-6674
MOBILE 082-55-77-444
