B&W will seek to diversify customer base after 2010

6th November 2007 By: Olivia Soraya Spadavecchia

Local instrumentation company B&W Instrumentation & Electrical said that it continued to see growth in its current markets - mining, infrastructure and industrial - until 2010, and would diversify from then on.

MD Brian Harley said on Tuesday, when the company released its full year results for 2007, that beyond 2010, B&W's strategy would see the firm become increasingly involved in projects in the nuclear, petrochemicals and power generation sectors with giants such as Sasol and Eskom.

Executive chairperson John Barrow noted that the firm expected to be involved in the construction of between two and three oil refineries in the Southern African region by 2010.

He added that B&W's strategy also included an additional effort to augment its foothold in Africa, particularly in the mining sector in the mineral-rich Democratic Republic of Congo.

Looking locally, the firm was recently awarded a small reticulation project (R70-million to R80-million) by Transnet, its first job as part of the Coega development, which Harley commented allowed the company to position itself strategically in the Port Elizabeth area.

On a larger scale, B&W's biggest project, the platinum concentrator for Anglo Platinum's Potgietersrus mine valued at R134-million, is expected to be completed in March next year.

Of the company's identified projects in the pipeline until 2010 (in the power generation, mining, chemical, gas and oil, industrial, food and beverage and nuclear sectors) over 80% have already passed the feasibility stage and are into the bankable feasibility stage, Harley noted.

These projects are forecast to be worth about R5-billion in 2010.

Financial Results


Barrow commented that all the results had been up from the previous year, and on target with predictions.

B&W posted headline earnings a share of 14,2c a share for the year ended August 31, and reported a profit after tax of R24,8-million for its maiden annual financial results following its listing on the AltX in July. Dividends of 3,5c a share will be paid to shareholders.

Revenue for the period was R294-million and R336-million has been projected for August 2008.

The order book stood at R240-million at the end of August, which was lower than the R336-million estimate, however, Barrow pointed out that it currently stood at R312-million.