Aveng: Interim profit to fall at least 20%

Aveng expected its earnings a share and headline earnings a share for the six months to December last year to be between 20 percent and 25 percent lower than a year earlier, the construction and engineering group said yesterday. This translated into headline earnings a share of between 78.4c and 83.6c and earnings a share of between 78.8c and 84c. Aveng attributed this to an 8 percent drop in net operating earnings from a year earlier, with Aveng Grinaker-LTA “generating a materially higher loss”. The mining operating segment’s contribution would be lower primarily because of the reduced order book reported in June. Net financing expenses were also materially higher as borrowings increased to fund working capital primarily on a gas project in Australia. Aveng fell 2.57 percent to R22.75. – Roy Cokayne