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CIMIC Group Limited Annual Report 2016 |
Operating and Financial Review
NEWWORK AND WORK IN HAND
(CONTINUED)
MINING & MINERAL PROCESSING WORK IN HAND
Mining & mineral processing work in hand was $10.0 billion at 31 December 2016, an increase of 4.4%, or $425.4 million. CIMIC
continued to diversify its mining & mineral processing work in hand by commodity and geography, and during the year new work
included work won in North and South America.
SERVICES WORK IN HAND
Services work in hand was $4.9 billion at 31 December 2016. Services work in hand is diversified across a range of markets in Australia,
New Zealand and South East Asia. Major contracts include metro rail network operations and maintenance, freight rail and naval ship
maintenance, and asset management services across oil and gas, water and power.
The major projects secured in FY16 by UGL and included in work in hand are:
•
$594 million contract for the supply and maintenance of locomotives to Pacific National, extending existing maintenance
agreements to 30 June 2026;
•
$570 million contract for maintenance and asset management services, including the initial maintenance facility installation works
for New Intercity Fleet in New South Wales;
•
$250 million contract for the continued provision of long term maintenance support for the Australian Navy’s ANZAC Class ships;
•
$127 million contract to design and construct a water treatment plant for Melbourne Water in Victoria, in a joint venture with CPB
Contractors; and
•
$100 million contract to engineer, procure and construct and operate and maintain the first phase of the Genex Solar project at
Kidston in North Queensland.
HLG WORK IN HAND
The Group’s share of HLG work in hand was $1.8 billion at 31 December 2016.
The major projects awarded to HLG Contracting in the period were:
•
$177 million contract to build the Gate Avenue commercial development at the DIFC Project in Dubai (CIMIC’s share approximately
$80 million); and
•
$215 million contract for the construction of the residential Al Mutahidah Towers in Qatar (CIMIC’s share approximately $97 million).
COMMERCIAL & RESIDENTIAL WORK IN HAND
Commercial & residential work in hand was $724.2 million at 31 December 2016, a decrease of 49.3%, or $703.4 million. The decrease
reflects the sale of development properties during the period.
OPPORTUNITIES
There is a robust pipeline of infrastructure, mining and mineral processing, and services opportunities relevant to CIMIC of around $100
billion of tenders, relevant to CIMIC, have been identified for 2017, (of which 69% is in Australia and New Zealand), $55 billion is in
construction, $25 billion is in mining and $20 billion is in services. In the order of $250 billion of projects, relevant to CIMIC, have been
identified as coming to the market in 2018 and beyond, (of which 60% Australia and New Zealand), $165 billion is in construction, $45
billion is in mining and $40 billion is in services.
CIMIC, through CPB Contractors and Pacific Partnerships, has been shortlisted for several large projects including the Melbourne Metro
Rail Link in Victoria, the Sydney Metro – TSE (Tunnels and Station Excavation works) and selected projects under the Western Sydney
Roads Upgrade Program in New South Wales.
In addition, CIMIC is pursuing numerous major domestic and international infrastructure projects such as:
•
Parramatta Light Rail in New South Wales and Perth MAX Light Rail in Western Australia;
•
Canberra Hospital Redevelopment in the Australian Capital Territory;
•
Health infrastructure projects in New South Wales;
•
Western package of the Outer Suburban Arterial Roads in Victoria (PPP);
•
Metro Trains Melbourne operations and maintenance extension in Victoria;
•
Sydney Metro City and Southwest Augmentation in New South Wales;
•
Northern Island Prison in New Zealand (PPP);
•
Central Kowloon Route – Kai Tak West, T2 Foundation and Substructure Airport in Hong Kong; and
•
North-South Corridor – N105 in Singapore.
CIMIC expects to expand its mining and mineral processing activities into other markets, for example by exporting its contract mining
skills further into North and South America providing CIMIC with additional diversification by commodity. This strategy is reflected in the
recent mining services contract award in the Canadian oil sands.
The acquisition of UGL provides significant opportunities to extend its service capabilities across CIMIC’s complementary operations, in
existing and new markets. UGL remains well positioned to benefit from the strong growth expected in services opportunities across road
and rail infrastructure, oil and gas, defence, water and renewable energy.
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