Announcement of Contract Awards by Australian Subsidiary McConnell Dowell
(Incorporated in the Republic of South Africa)
(Registration number: 1944/018119/06)
Share code: AEG
Share ISIN: ZAE000194940
("Aveng", "the Company")
ANNOUNCEMENT OF CONTRACT AWARDS BY AUSTRALIAN SUBSIDIARY MCCONNELL
• Contract awards are in line with the redefined and focused business development strategy
of McConnell Dowell announced in the Group’s full year results in September 2018
• Awards totaling R3.8 billion secured across all McConnell Dowell business units
underpins good progress in the execution of the Group’s Strategic Action Plan
• Contract awards secured by McConnell Dowell demonstrate the Operating Group’s
specialist capabilities in Marine, Pipelines, Civil, Tunneling, Rail and Building
UPDATE ON ORDER BOOK
Aveng is pleased to provide an update on recent contract awards secured during the first quarter in the
Group’s Australian subsidiary, McConnell Dowell. McConnell Dowell is a core business within the Aveng
Group. A key priority in its Strategic Action Plan is to enhance operational performance, deliver growth
and unlock value from core assets. The growth in the order book was identified as a key metric to achieve
this objective, when the Group presented its annual results on 25 September 2018. McConnell Dowell is
a specialist and respected infrastructure contractor offering engineering and construction solutions to the
Infrastructure, Building and Resource sectors across Australia, New Zealand and the Pacific, Southeast
Asia and the Middle East. All four business units have recently secured new projects in core markets and
across their specialist capabilities providing strong opportunities across all operating regions
Key contracts awarded during the first quarter include:
Webb Dock & Burnie Facilities Upgrade (Australia): McConnell Dowell’s marine expertise is being
further showcased having been contracted to upgrade existing wharf facilities at Webb Dock and Burnie
for Toll Group. The project will commence immediately and will be completed ready for operational use in
Swanson Dock Rehabilitation (Australia): Further works to rehabilitate the berth at Swanson Dock
have been awarded by the Port of Melbourne Corporation. The repeat work demonstrates the strength
and alignment of a successful customer relationship.
Aviation Rd & Wyndham (Australia): As part the ongoing capital works programme under the Western
Program Alliance, McConnell Dowell has been awarded the contract to remove the Aviation Road Level
Rail Crossing in Laverton and construct the Wyndham Vale Stabling Yard. Works on both packages are
scheduled to commence immediately. These awards follow the successful execution of recent projects for
the Victorian State government.
Neste Underpass (Singapore): McConnell Dowell’s underground reputation will continue to be
strengthened as it has been selected by Neste to construct two underpasses for production lines,
services lines and facilities at their refinery in Singapore. The underpasses are designed to connect
Neste’s new facilities with its existing refinery units on the nearby islands of Tuas in Singapore.
Clean Fuel Project (Thailand): McConnell Dowell is undertaking the early works package associated
with the Clean Fuel Project for Thai Oil. The project team is mobilising quickly to ensure the works are
ready for commissioning during 2019.
Jane St & Mulgoa Rd (Australia): McConnell Dowell progresses a strategic growth initiative into the
New South Wales transport infrastructure market with the award by New South Wales Roads and
Maritime Services (RMS) of the infrastructure upgrade contract for Jane Street and Mulgoa Road in
McConnell Dowell has previously delivered projects of this nature and civil construction remains a key
specialist capability for the company. The Project was formally launched in October 2018 and
construction will commence in December 2018. Completion is due in May 2020.
Auckland City Mission (New Zealand): Built Environs has secured the contract to undertake the
Mission Home Ground Development Project in Auckland, as part of the City Mission Charitable Trust.
This is the first project for Built Environs in New Zealand and cements a strategic entry into the building
Hunua 4 S11 (New Zealand): This two-year project is the final stage of the Hunua 4 Watermain Project
and will supply water to Auckland’s CBD from Redoubt North Reservoir in Manukau. The Hunua 4 S11
project forms part of a large water investment scheme underway by Watercare and will bring important
benefits in water security and availability to Auckland and adjacent regions.
These contract awards provide a good start to the new financial year and reflect McConnell Dowell’s
improved operational state and diversified market offerings. The recent awards total R3.8 billion and take
McConnell Dowell’s order book to R8.7 billion (Up 17% from 30 June 2018). Most gratifying is the
continuation of work from existing customers building on past excellent performance as well as new
business won in line with McConnell Dowell’s over-arching strategy. With a further potential AUD 1 billion
of work in Early Client Involvement (ECI) processes, McConnell Dowell is well positioned to continue to
secure additional work in the near term.
The diversification of McConnell Dowell’s Order Book highlights the breadth and depth of expertise
across its operational areas. Moreover, the market sectors serviced by McConnell Dowell are expected to
offer further growth opportunities with the continued roll-out of large- and medium-sized projects across
its operating footprint.
The information contained in this announcement has not been reviewed and reported on by the
Company's external auditors.
2 November 2018
UBS South Africa Proprietary Limited
Tel: 011 779 2979
Group Executive: Strategy & Investor Relations
Date: 02/11/2018 02:25:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.