Angolan unit hurts Consolidated Infrastructure
Consolidated Infrastructure Group says a slowdown in Angolan oil exploration, a stronger rand and higher interest costs blunt growth
AES, the Angolan associate of Consolidated Infrastructure Group (CIG), dragged down the infrastructure-focused firm’s headline earnings per share by a whopping 18.5% in the six months to February 2017, from the matching period in 2016, despite "robust energy markets" elsewhere in Africa. CIG — which provides high voltage products to the energy sector, heavy building materials to the construction industry and waste management services for the oil and gas sectors — said a slowdown in Angolan oil exploration, a stronger rand and higher interest costs were a barrier to significant growth in revenue in the interim period. These factors also took the gloss off substantial growth in earnings before interest, tax, depreciation and amortisation (ebitda). Ebitda was up 20% to R328m from R274m at the corresponding period in 2016, while revenue grew 29% to R2.7bn from R2.1bn previously. CIG’s order book in February grew 25% year on year to R6.6bn. CEO Raoul Gamsu said on Monday he remained conf...
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