Aveng : new contracts by Australian subsidiary

Aveng provided an update on recent contract awards secured by the Group's Australian subsidiary, McConnell Dowell, a core business within the Aveng Group. A key priority in its Strategic Plan is to deliver long term sustainable growth.

McConnell Dowell is a respected specialist infrastructure contractor providing engineering and construction solutions to the infrastructure, building and resource sectors across Australia, New Zealand and the Pacific and Southeast Asia. Its latest contract awards reaffirms the disciplined growth agenda and reflects the growing momentum and demand for its specialist capabilities against a backdrop of strong opportunities and competition across its operating regions. The business is well positioned to take advantage of the significant market opportunities in which it operates.

Key contracts awarded during FY 2019 Q2 include:

Tuas Water Reclamation Project (Singapore): The Tuas Water Reclamation Plant is a highly strategic and important infrastructure project that will deliver substantial environmental and social benefits to Singapore and its people. This award comes after McConnell Dowell's successful completion late last year of the complex Tuas Road bridge project for a related Singapore Government entity in the Tuas vicinity. McConnell Dowell will provide site-wide facilities and support services for the Tuas Facility including construction of the outfall, sewer connections in the vicinity, as well as the provision and maintenance of services such as security, utilities, telecommunications, traffic management. When completed, the Tuas Facility will be the largest water reclamation plant in Singapore to use membrane bioreactor technology.

Wingfold Tower (Australia): Following a change of ownership of this development site, McConnell Dowell's subsidiary Built Environs will continue work on the 25 level luxury apartment complex in Adelaide's CBD under a new construction contract. Construction will resume in early 2019 and is scheduled for completion in 2020.

Pukekohe Wastewater Treatment Plant (New Zealand): McConnell Dowell's joint venture with HEB Construction Ltd will cement its reputation as the leading provider of wastewater development projects in New Zealand with this significant treatment plant upgrade required to service the growing South Auckland region. The new facility will double the plant's capacity and works will begin immediately. The award of this project builds upon the successful completion of the award-winning BNR project in 2018.

Wynyard Edge Alliance (New Zealand): McConnell Dowell's reputation for marine works has been further enhanced by being selected to execute the Wynyard Edge Alliance in Auckland. Working alongside Downer, BECA, Tonkin + Taylor, Auckland Council and MBIE, the Alliance will design and construct the infrastructure to support the 36 America's Cup in New Zealand to be held in 2021.

Stanley Street Stormwater Upgrade (New Zealand): McConnell Dowell will deliver stormwater upgrade and outlet works for the Ports of Auckland.

These recent contract awards cement McConnell Dowell's position in key strategic markets, including commercial real estate, water and waste water and marine sectors. Moreover, the awards underpin McConnell Dowell's Strategic Plan of steady growth, reliable performance and in being a valued business partner through a disciplined and highly-focused project pursuit pipeline. The awards confirm McConnell Dowell's progress under its business strategy to build a platform for long term, sustained growth and profitability.

The awards in the first half of FY2019 total over R8.5 billion, taking McConnell Dowell's Order Book to R11.4 billion as at 31 December 2018 (up 50% from R7.6 billion as at 30 June 2018). With a healthy level of work in Early Client Involvement (ECI) status, McConnell Dowell is well-positioned to continue to secure additional work in the near term.

This supports McConnell Dowell's baseline revenue for FY 2020 and beyond, providing a strong base for continued growth across its core markets and operating regions. In addition, the market sectors that McConnell Dowell services are expected to see ongoing positive conditions, offering growth opportunities with the continued roll out of medium and large-sized projects.