Raubex to report rise in H1 earnings
Infrastructure development group Raubex expects to report an up to 10% increase in its earnings a share and headline earnings share for the six months to August 31.
The JSE-listed company noted that the rise, which stemmed from favourable operating conditions in its materials division, would translate into earnings a share of 103.5c to 113.9c apiece, while headline earnings a share would rise to 101.6c and 111.8c apiece.
Raubex said: “The outlook for the commercial quarry operations and the materials handling and processing operations remains positive.”
Also contributing to the positive rise in earnings, Raubex reported that the volume of work out on tender in its road construction division was healthy and, although conditions remained competitive in the sector, the group maintained its order book at suitable levels while following its strategy of selective order book replacement at better margins.
However, Raubex’s road surfacing and rehabilitation segment and its asphalt production operations experienced a challenging period as a result of a severe bitumen supply shortage, and aggregate supply issues, both of which had been resolved.
Its infrastructure segment also experienced a slow start to the year due to the effect of lower commodity prices on the capital expenditure plans of the group’s mining clients and also the timing of the execution of solar energy projects. Nevertheless, with site establishment on secured solar work completed towards the end of the first half, the group was expecting a stronger second-half performance from this division.
In Zambia, Raubex’s two link 8000 contracts were progressing well operationally, but the devaluation of the Zambian kwacha during September would impact the future profitability of these contracts, should the currency remain at current levels.
The group was in the process of negotiating measures to mitigate the exchange rate risk and support the successful completion of the contracts.
Raubex will publish its results on November 9.