PRETORIA – Aveng’s Australian-based subsidiary, McConnell Dowell, secured five key contract awards valued at more than R4 billion in the second quarter of its financial year to boost its total awards in the first half of its financial year to more than R8.5bn.
The awards increased McConnell Dowell’s order book to R11.4bn at end-December, which was 50 percent higher than the R7.6bn at end-June last year.
McConnell Dowell is a specialist infrastructure contractor offering engineering and construction solutions to the infrastructure, building and resource sectors across Australia, New Zealand and the Pacific, and Southeast Asia.
Eric Diack, the executive chairperson of Aveng, said yesterday that with a healthy level of early client involvement work underway, McConnell Dowell was well-positioned to continue to secure additional work in the near term.
“McConnell Dowell’s latest contract awards reaffirm the disciplined growth agenda of the business and reflect the growing momentum and demand for its specialist capabilities against a backdrop of strong competition across its operating regions,” he said.
The key contracts awarded to McConnell Dowell during the second quarter of its financial year included the Tuas water reclamation project in Singapore; the Wingfold Tower 25-level luxury apartment complex in Adelaide in Australia; the Pukekohe wastewater treatment plant in the South Auckland region in New Zealand; the design and construction contract with the Wynyard Edge Alliance for the infrastructure to support the 36th Americas Cup in New Zealand (to be held in 2021); and the Stanley Street stormwater upgrade in the Ports of Auckland in New Zealand.
Aveng added a key priority in the group's strategic action plan was to enhance operational performance, deliver growth and unlock value from its core assets, of which McConnell Dowell was one, which was measured through sustainable growth in the company's order book.
Aveng added the diversification of McConnell Dowell’s order book highlighted the breadth and depth of expertise across its operational areas, with the continuation of work from existing customers building on past performance.
It said the contract awards supported McConnell Dowell’s baseline revenue for its 2020 financial year and beyond and provided a strong base for continued growth.
The market sectors that McConnell Dowell serviced were expected to see ongoing positive but competitive conditions, it said.
The awards announcement follows hard on the heels of Aveng on Friday reporting on progress with the implementation of its turnaround strategy with the sale of 100 percent of Aveng Water, its water treatment process engineering business, and Aveng Namibia Water business for R95 million.