CIG expects lower FY17 earnings

01 September 2017

JSE-listed Consolidated Infrastructure Group (CIG) expects its earnings per share (EPS) and headline earnings per share (HEPS) for the financial year ended August 31, to decrease by 25% to 35%.

EPS are expected to be between 165.75c and 191.25c, compared with 225c in the 2016 financial year, while HEPS will be between 165.95c and 191.25c, compared with 255.3c in the prior year.

CIG noted that its latest acquisition Conlog and certain other group businesses had performed in line with management’s expectations.

Its Consolidated PowerProjects (Conco) division had, however, been negatively affected by the uncertain macroeconomic environment in South Africa, as well as by the delay in the signing of new power purchase agreements under South Africa’s Renewable Energy Independent Power Producer Procurement Programme, through which Conco had signed contracts of R2.3-billion and anticipated up to R4-billion worth of contracts for rounds 4 and 4.5 of the programme.

About R800-million of work that Conco had expected would be executed in the financial year under review, did not materialise.

Meanwhile, the performance of the Angola Environmental Services business continued to be negatively affected by the slowdown in the Angolan oil sector.

“There has been no increase in the number of rigs in the market since reporting our interim results. The business, however, still delivers attractive earnings before interest and depreciation,” stated CIG.

CIG will publish its results on November 8. 

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