Delayed Kpone power project to hobble Group Five results
The construction group warns that hold-ups will severely hamper its interim results to December 2017
Group Five said on Tuesday it could not provide any more detail on the delayed Kpone power project in Ghana, but said hold-ups would severely hamper the company’s interim results to December 2017. The JSE-listed construction group’s first-half results for financial 2018 come out next week. For now, it is in a closed period but based on the assessment of an independent expert the final completion date for the $410m gas-and oil-fired power station will now be in June 2018. To this end, the company expects a 151% leap in headline loss per share for the period from the same period in 2016. “The Kpone contract, together with the ongoing pressure in the South African construction market — and the further rationalisation of overheads in the construction businesses and the corporate office — continue to place pressure on free cash resources,” Group Five said. Possible project-delay penalties were capped at $62.5m, assuming the group was responsible for a six-month delay in completion of the...
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