Aveng narrows basic interim loss to A$1.5m
Infrastructure and contract mining group Aveng has reported higher gross earnings of A$69.4-million for the six months ended December 31, compared with the prior half-year's gross earnings of A$38.3-million.
Interim group CEO David Simpson says revenue was, however, lower at A$1.2-billion, compared with revenue of A$1.4-billion in the prior comparable six months, owing to an anticipated slowdown in infrastructure activity in Australia and New Zealand.
For him, the reporting period was one that reflected a return to modest operating profit and improved execution across the group.
Aveng has been stabilising its operations and improving gross margin performance, while acknowledging that further progress is required.
“Our focus remains on refining our risk appetite and strengthening our risk management framework to ensure long-term business sustainability and stakeholder value.
“In infrastructure, our priorities are completing the Kidston project in line with the current plan, maintaining strong performance across the rest of the portfolio, securing new work and building the order book. We also remain committed to delivering on our current contracts in Southeast Asia,” Simpson confirms.
In the building segment, Aveng aims to sustain the current positive trajectory of growth and profitability, while the group is working to steadily increase volumes and profitability at the Gamsberg project, within its mining segment.
The group also targets an improved financial performance at the Tshipi operation, especially since the contract is not sustainable. “Management is considering all options to bring this to resolution,” Simpson states.
In the six months under review, Aveng reported operating earnings before capital items of A$9.4-million, compared with an operating loss of A$31-million in the prior comparable period.
Headline earnings of A$300 000 compare with a headline loss of A$34-million in the prior comparable period.
The group’s basic loss amounted to A$1.5-million, compared with a basic loss of A$32.7-million in the prior corresponding six months.
Aveng reported a basic loss a share of A$0.01 in the period under review, compared with a loss a share of A$0.25 in the prior period.
The company has A$3.5-billion of work in hand and net cash of A$250-million.
Looking ahead, Simpson foresees a strong pipeline of work emerging in the Pacific Islands, while New Zealand shows increasing project visibility. In Australia, timing certainty remains a challenge and market capacity may tighten as AUKUS and Brisbane Olympics projects advance.
Aveng’s infrastructure segment holds A$1.2-billion in preferred status projects and has submitted A$1-billion in competitive tenders for the remainder of the 2026 financial year.
In the building segment, Australian markets remain robust, supported by government investment in healthcare, education and recreation while new opportunities in data centres are rapidly emerging. New Zealand demand remains subdued, however, but is expected to benefit from higher health and education spending.
Aveng’s preferred project status stands at A$100-million in this segment, with A$130-million of tenders having been submitted.
In mining, South Africa’s infrastructure constraints, geopolitical fragmentation and inflation continue to affect mining activity, with Aveng to remain focused on operational improvement and cash generation.