Aveng slumps almost 20% after warning of hit from project delays | Business

  • 📰 News24
  • ⏱ Reading Time:
  • 39 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 19%
  • Publisher: 80%

South Africa News News

South Africa South Africa Latest News,South Africa South Africa Headlines

Shares of construction and engineering group Aveng slumped almost a fifth on Thursday, after it warned that its Australasian specialist contract McConnel Dowell is expected to post an operating loss in its year to end-June. | News24_Business

McConnell Dowell also believes, however, that it is prudent to provide for the anticipated additional costs associated with the extended time to complete the project, together with an allowance for possible liquidated damages associated with delayed completion, given that the client has not yet granted an extension of time.

Valued at about R1.43 billion on the JSE, Aveng's other core business in mining contractor Moolmans, and it is has been battling a hefty debt pile that peaked at R3.3 billion in 2018. But it is now close to extinguishing its legacy SA debt, which now stands at R353 million. In 2022, the company had inked a deal of about R1 billion - including its net cash - to sell its Trident Steel business, which it expects to be concluded towards the end of June.In times of uncertainty you need journalism you can trust. For 14 free days, you can have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. Journalism strengthens democracy. Invest in the future today. Thereafter you will be billed R75 per month.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 4. in ZA

South Africa South Africa Latest News, South Africa South Africa Headlines