GROUP-5:  89   0 (0.00%)  22/03/2019 00:00

South Africa's Group Five H1 loss widens on Ghana contract

JOHANNESBURG, April 12 (Reuters) - South African construction and engineering firm Group Five said on Thursday its half-year loss widened more than it expected, following continued difficulties at its Kpone power project in Ghana.

The headline loss per share for the six-months ended Dec.31, widened to 781 cents per share from 310 cents a year earlier.

"We expected this period to remain very difficult. Unfortunately, even against this expectation, our results for the six months to December were significantly below our objectives and very disappointing," said Chief Executive Themba Mosai in a statement.

The company was ensuring "continued senior team focus to drive this contract to completion."

The group said in December that, although the Kpone contract was 97 percent complete with only commissioning remaining, further delays were being experienced, which resulted in a loss on the contract of 649 million rand ($54 million).

The reasons for the delays include unexpected marine conditions and the weather effect on seawater intake, further late delivery of key components, problematic and faulty equipment from main sub-contractors and inaccurate and late designs, it said.

Group revenue dropped 14.5 percent year on year to 4.9 billion rand.

The order book fell to 13.4 billion rand from 14.6 billion in June.

($1 = 11.9620 rand) (Reporting by Nqobile Dludla; editing by John Stonestreet)

2018-04-12 08:58:59

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