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CIMIC Group Limited Annual Report 2016 |
Operating and Financial Review
NEWWORK AND WORK IN HAND
CIMIC maintains its position as a leading international contractor and the world’s largest contract miner with a diversified portfolio of
work in hand.
The Group’s total work in hand was $34.0 billion at 31 December 2016, an increase of 17.3%, or $5.0 billion, compared to 31 December
2015. Work in hand includes the full consolidation of UGL at 31 December 2016.
Work in hand
$m
December
2016
December
2015
chg. $
chg. %
Opening work in hand
29,004.4
31,001.8
(1,997.4)
(6.4)%
New work
13,433.1
14,131.4
(698.3)
(4.9)%
Acquisition work in hand (UGL)
5,109.0
-
5,109.0
-
Executed work
(13,534.5)
(16,128.8)
2,594.3
(16.1)%
Total work in hand
34,012.0
29,004.4
5,007.6
17.3%
Work in hand was split 68:32 between domestic and international markets, compared with 65:35 in FY15.
MAJOR CONTRACT AWARDS AND SCOPE INCREASES IN 2016
20
During the period, $13.4 billion of new work was awarded
.
New work comprised $8.0 billion of new contracts and $5.4 billion of contract
extensions and variations, including the impact of foreign exchange rate movements.
In Australia and New Zealand, CIMIC won several major contracts, including:
•
$500 million contract to design and construct the Level Crossing Removal Project: Caulfield to Dandenong in Victoria;
•
$300 million contract to design and construct the first stage of Capital Metro, Canberra’s light rail project, and the project’s
$300 million 20-year maintenance concession contract in the Australian Capital Territory;
•
$330 million design and construction contract for a 5km extension of the Roe Highway in Perth in Western Australia (CIMIC’s share
approximately $235 million);
•
$200 million contract to design and construct the second stage of the Gold Coast light rail project in Queensland;
•
$350 million contract for network integrity and facilities management for Telstra across Australia (CIMIC’s share approximately
$164 million);
•
$160 million contract to construct the Bruce Highway – Cooroy to Curra, Section C in Queensland; and
•
$250 million contract for delivery of Wideband services for Telstra across Australia (CIMIC’s share approximately $117 million).
Overseas major awards include:
•
$1.58 billion contract to construct the Tseung Kwan O – Lam Tin Tunnel in Hong Kong (CIMIC’s share approximately $805 million);
•
$710 million in contract expansions and extensions at the Melak coal mine in East Kalimantan, Indonesia;
•
$840 million contract to provide mining services in Canada’s Athabasca region (CIMIC’s share approximately $428 million);
•
$320 million contract to construct a Columbarium and Garden of Remembrance in Hong Kong;
•
$223 million contract for phases two and three of the Maker Maxity development in India; and
•
$370 million contract extension at Debswana Diamond Company’s Jwaneng mine in Botswana (CIMIC’s share approximately $222
million).
Work in hand by segment
21
$m
December
2016
%
December
2015
%
chg. $
chg. %
Construction
12,959.0
38%
12,448.1
43%
510.9
4.1%
Mining & mineral processing
10,025.4
30%
9,600.0
33%
425.4
4.4%
Services
4,926.3
14%
-
-
4,926.3
-
HLG
1,798.1
5%
2,403.6
8%
(605.5)
(25.2)%
Commercial & residential
724.2
2%
1,427.6
5%
(703.4)
(49.3)%
Corporate
3,579.0
11%
3,125.1
11%
453.9
14.5%
Total work in hand
34,012.0 100%
29,004.4 100%
5,007.6
17.3%
CONSTRUCTION WORK IN HAND
Construction work in hand was $13.0 billion at 31 December 2016, an increase of 4.1%, or $510.9 million. Construction work in hand is
diversified across a range of markets and sectors in Australia and overseas. The major projects include the delivery of social, rail and road
infrastructure, predominantly in Austalia and Hong Kong.
20
Australian dollar values at date of announcement of the awards, unless otherwise noted.
21
Mining & mineral processing work in hand has been restated to include Sedgman; FY15: $92.0 million being reclassified from
corporate.
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