“These projects will very likely form an integral part of the stimulus packages and recovery efforts that the respective governments will implement as they emerge from lockdown restrictions,” Aveng said.
In addition to the secured orders, McConnell Dowell has in excess of A$1.2bn of tenders under evaluation, pending contract award. Tender volumes are expected to increase further over the coming months, particularly in support of stimulus packages as economies enter a post-lockdown period, the group said.
It is too soon to assess the financial effects of the coronavirus, however, and liquidity and cash-flow management in the South African market remains a key risk to the group, Aveng said.
Moolmans, which is one of Africa’s largest open-cut mining contractors, recommenced full operations at the majority of its contracts following SA’s move to a level-4 lockdown, the group said. Despite the disruption caused, Moolmans continues to actively pursue a number of opportunities for new work during the pandemic.
Aveng was once one of South Africa’s largest construction firms, but has been hit by a slowdown in SA infrastructure spending, and has been on the receiving end of fines related to collusive practices.
Aveng may benefit as states rolls out stimulus
Embattled infrastructure and mining group Aveng, whose share price has fallen more than 99% over the past three years, says it may benefit from a number of new government contracts as countries attempt to offset the economic effects of Covid-19 through stimulus.
McConnell Dowell, the group’s Australian specialist infrastructure contractor, has a current order book of A$1.9bn (R22.8bn), representing growth of 47% since the end of December, the group said on Thursday, and could be set to benefit from a slew of new tenders.
The geographic diversity of the projects should help, given that many countries have implemented Covid-19 lockdown measures, and a high proportion of government contracts should further reduce risks related to contracts falling through, the group said.
“These projects will very likely form an integral part of the stimulus packages and recovery efforts that the respective governments will implement as they emerge from lockdown restrictions,” Aveng said.
In addition to the secured orders, McConnell Dowell has in excess of A$1.2bn of tenders under evaluation, pending contract award. Tender volumes are expected to increase further over the coming months, particularly in support of stimulus packages as economies enter a post-lockdown period, the group said.
It is too soon to assess the financial effects of the coronavirus, however, and liquidity and cash-flow management in the South African market remains a key risk to the group, Aveng said.
Moolmans, which is one of Africa’s largest open-cut mining contractors, recommenced full operations at the majority of its contracts following SA’s move to a level-4 lockdown, the group said. Despite the disruption caused, Moolmans continues to actively pursue a number of opportunities for new work during the pandemic.
Aveng was once one of South Africa’s largest construction firms, but has been hit by a slowdown in SA infrastructure spending, and has been on the receiving end of fines related to collusive practices.
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