Wind, solar power boost Raubex

JSE-listed infrastructure development group Raubex says interim headline earnings per share to end-August could almost double, on a boost from independent power producer contract work.

JSE-listed infrastructure development group Raubex said on Thursday interim headline earnings per share (Heps) to endAugust could almost double, on a boost from independent power producer (IPP) contract work.

Heps is expected to rise by 70%-90% to a range of 60.7c to 67.8c, Raubex said in a statement. The infrastructure division experienced strong growth, mainly as a result of work related to IPPs, it said, though stable conditions also persisted in the affordable housing and commercial building sectors.

Tough conditions remained in the roads and earthworks division, with the company reporting excess capacity compared with the volume of work on hand. Cost cutting had reduced losses in this division.

Community unrest affected quarry operations during the period, and there was considerable margin pressure and a decrease in operating profit in the company’s materials division, Raubex said.

“The company has maintained a strong balance sheet throughout the period and is well positioned to participate in future opportunities in the SA construction sector,” the statement said.

Some opportunities on tender include extensive upgrades to the N2/N3 road network in KwaZulu-Natal, as well as upgrades at OR Tambo International Airport and Cape Town International Airport.

Raubex’s share closed at R19.35 on Wednesday, having risen 13.82% so far in 2019.

13.82% The rise in the share price of Raubex so far in 2019