http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.12Change: 0.06
R/$ = 10.51Change: 0.02
Au 1308.31 $/ozChange: 9.43
Pt 1479.50 $/ozChange: 6.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Suppliers Directory Research Jobs Announcements Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Apr 20, 2009

B&W secures orders worth R600m as it diversifies in light of slowdown

Back
B&W Instrumentation MD Brian Harley discusses the company's current growth strategy (Videographer: Danie de Beer; Editing: Darlene Creamer)
Africa|B&W Instrumentation|CoAL|Eskom|Gas|Instrumentation|Petrochemicals|Projects|Sasol|Africa|Botswana|Mozambique|South Africa|Instrumentation Contractor|Mining|Oil And Gas|Oil And Gas Sector|Oil Refineries|Petrochemicals|Power Generation|Power-generation|Brian Harley|Impumulelo|Infrastructure|John Barrow|Power
Africa|CoAL|Eskom|Gas|Instrumentation|Petrochemicals|Projects||Africa||Mining|Oil And Gas|Petrochemicals|Power Generation|Power-generation|Infrastructure|Power
africa-company|bw-instrumentation|coal|eskom|gas-company|instrumentation-company|petrochemicals-company|projects|sasol|africa|botswana|mozambique|south-africa|instrumentation-contractor|mining|oil-and-gas|oil-and-gas-sector|oil-refineries|petrochemicals|power-generation|power-generation-industry-term|brian-harley|impumulelo|infrastructure|john-barrow|power
© Reuse this



JSE-listed electrical and instrumentation contractor B&W Instrumentation, which had diversified its focus as part of its efforts to mitigate against the economic slowdown, had secured a record amount of work up to 2010, MD Brian Harley reported on Monday.

Its order book stood at about R600-million, with R474-million of that secured during the interim period, which ended on February 28, 2009.

But market conditions in the sectors in which the company operated had deteriorated over the last six months, and this trend was expected to continue until 2011/12. None of the projects in which it was participating had been cancelled, but a number had been delayed.

To reduce the impact of the economic slowdown, B&W had decided to identify a number of projects that it wanted to participate in early and had marketed itself for those projects.

B&W had also diversified into the oil and gas, power generation and infrastructure sectors, whereas it had previously focused mostly on the mining sector.

Executive chairperson John Barrow added that B&W had increased its market share to 22%, compared with 18% in 2008.

Further, it was in the early stages of tendering for Eskom’s two new coal-fired power stations, Medupi and Kusile, for which it expected to receive a “sizable chunk” of work on at least one of the projects.

The company could also potentially work on a new 270-MW power plant to be built in Botswana, as well as oil refineries that would be built in South Africa and in Mozambique.

Harley noted that B&W was aiming to secure R150-million of work in the oil and gas sector and R190-million of work in the power generation sector in the next few months.

Most of its focus in the mining industry had now also shifted towards coal-mining projects, with Harley saying that it would tender on the two new coal mines that petrochemicals company Sasol was planning to establish in Mpumalanga.

In October last year, Sasol’s mining division reported that it would spend R6-billion on the development of two new mines in the Secunda area, namely Thubelisha, formerly called Rooipoort, and Impumulelo, formerly called Carmona.

In addition, Barrow noted that the company was now also on the lookout for potential acquisition targets, as the economic slowdown would reveal opportunities for takeover.

Harley added that the company had already started tentative talks with two potential takeover targets.

FINANCIAL PERFORMANCE
B&W had, in the six months ended February, increased its net profit by 21% to R34,1-million, compared with R28,1-million in the six months ended February 2008.

Headline earnings a share were up 22% to 17,2c a share, compared with 14,1c a share the year before, while revenues had increased by 23,6% to R271-million, compared with R219,3-million the year before.

Edited by: Terence Creamer
© Reuse this Comment Guidelines
 
 
 
 
 
 
 
 
Other Construction News
The South African Real Estate Investment Trust (SA Reit) Association has called on the Competition Commission to intervene in undesirable exclusivity clauses in retail leases that were allowing retailers to stifle market share. The association’s members, which...
ADAM HABIB University of Witwatersrand vice-chancellor and principal Adam Habib
The first of a series of 15 public debates exploring options for the implementation of the National Development Plan (NDP) was officially inaugurated at the University of the Witwatersrand (Wits) School of Governance this week. In association with the Oliver and...
Mike Rossouw
Eskom’s appointment of former mining executive Mike Rossouw on a one-year, extendable assignment appears to be closely associated with Public Enterprises Minister Lynne Brown’s appeal for “extraordinary” steps to be taken to deal with the “unsatisfactory”...
More
 
 
Latest News
Responding in writing to a recent Parliamentary question by the Democratic Alliance, Transport Minister Dipuo Peters has provided an update for each of the country’s 13 bus-rapid transport (BRT) systems, noting that each network is at a different stage of...
The South African Real Estate Investment Trust (SA Reit) Association has called on the Competition Commission to intervene in undesirable exclusivity clauses in retail leases that were allowing retailers to stifle market share. The association’s members, which...
ADAM HABIB University of Witwatersrand vice-chancellor and principal Adam Habib
The first of a series of 15 public debates exploring options for the implementation of the National Development Plan (NDP) was officially inaugurated at the University of the Witwatersrand (Wits) School of Governance this week. In association with the Oliver and...
More
 
 
Recent Research Reports
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
Real Economy Insight: Road and Rail 2014 (PDF Report)
This six-page brief covers key developments in the road and rail industries over the past 12 months, including details of South Africa’s road and rail network and prospects for both sectors.
Real Economy Insight: Steel 2014 (PDF Report)
This four-page brief covers key developments in the steel industry over the past 12 months. It provides an overview of the global and South African steel and stainless steel markets, South Africa’s major steel producers and events that have shaped these markets.
 
 
 
 
 
This Week's Magazine
Multinational semiconductor chipmaker corporation Intel announced its national campaign to further acquire partners to drive its She Will Connect programme, an initiative that aims to expand digital literacy skills to young women in developing countries, further into...
South Africa's MeerKAT radio telescope array programme should get back on schedule within a few months. This assurance has been given by SKA South Africa (SKA SA) associate director: science and technology Prof Justin Jonas. Early last month, Science and Technology...
The Passenger Rail Agency of South Africa’s (PRASA’s) Metrorail service will remain a subsidised service following its current multibillion-rand rolling stock, station, depot and signalling upgrade programme. PRASA group CEO Lucky Montana has allayed fears that...
GARYN RAPSON Contaminated Land Provisions in the National Environmental Management: Waste Act No 59 of 2008 will open the door for court battles to determine who will be held liable for the remediation
The uncertainties around the remediation of affected areas as addressed in the Contaminated Land Provisions in the National Environmental Management: Waste Act No 59 of 2008 will possibly spark litigation and disputes between landowners and businesses, contractors...
South Africa is currently the largest component of the African Development Bank’s (AfDB’s) active portfolio in Southern Africa, comprising 62.5% of the bank’s $7.9-billion exposure to the 12-country region – the second largest beneficiary is Mauritius, which...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks