Welshpool-based contracting group Macmahon Holdings Ltd has signed $180 million worth of new rail and civil construction contracts, taking its order book to the record level of $1.8 billion, the company announced today.
Welshpool-based contracting group Macmahon Holdings Ltd has signed $180 million worth of new rail and civil construction contracts, taking its order book to the record level of $1.8 billion, the company announced today.
The full text of a company announcement is pasted below
MACMAHON HOLDINGS LIMITED (ASX: MAH) announced today that it had been awarded a number of new rail and civil construction contracts with a combined value of $180 million.
The new contracts add impetus to the Group's focus on securing infrastructure contracts, particularly in the eastern states which has delivered 50 per cent of the new work.
Chief Executive Officer, Nick Bowen, revealed that since January, Macmahon has won more than $370 million of new contracts, taking its order book to a new record level of $1.8 billion.
"The real positive is that we have already secured $850 million of our 2008 target revenue of $1.2 billion. Usually by April, we only have 50 per cent of our work locked in for the following year, but we now have 70 per cent, which puts us on track for significant growth next year."
Mr Bowen added: "The award of these new contracts is a real plus for Macmahon. However, the new work is later than we expected and our 2007 full year revenue, including Joint Ventures, will now be around $950 million compared to the $1 billion anticipated following the half year result."
"While revenue will be slightly lower, we are maintaining margins and as previously advised, expect our second half profit to meet or exceed the first half normalised result of $14.7 million," he said.
The contracts, which cover a range of infrastructure projects across Australia, are:
- Kingsgrove to Revesby Quadruplication Project - MVM Rail (a subsidiary of Macmahon) as a partner in the K2RQ Alliance has been awarded a major contract by the Transport Infrastructure Development Corporation (NSW Government) which will involve tracklaying on the East Hills Line in Sydney.
- Eyre Peninsula Rail Upgrade - This rail track restoration project will see MVM Rail undertake work to upgrade the rail line in the Port Lincoln and Kimba area of South Australia.
- Goonyella Rail Duplication - In Queensland, Macmahon has won a contract for Queensland Rail involving earthworks to upgrade the coal rail line on the Goonyella Branch Duplication project.
- Kingston Foreshore Development - In Canberra, Macmahon has been awarded a contract for the initial construction work at the Kingston Foreshore Harbour, involving the reclamation of a portion of Lake Burley Griffin.
- Stirling Dam Upgrade Stage 2 - Located near Harvey in Western Australia, the Water Corporation dam is being upgraded in a project that will refurbish the dam wall and spillway.
- Boddington Gold Mine Concrete Works - Located southeast of Perth, the contract will involve the construction of concrete foundations for the process plant as part of the new open cut mine.
- Blacktip - This contract for Eni Australia at the Blacktip Gas Project in the Northern Territory involves the construction of roads and other plant facilities.