Struggling Raubex scores with wind and solar projects
Infrastructure development group secures R500m work as revenue and operating profit decline in interim period
Listed infrastructure development group Raubex has secured wind and solar projects worth R500m that are part of SA’s renewable energy independent power producer procurement (REIPPP) programme. The new work will soften the blow of the dearth of road construction projects amid a declining order book especially from the SA National Roads Agency (Sanral). In the year ended February 28, the order book from Sanral, which historically accounted for about 25% of Raubex’s orders, fell to 12%. The Sanral tenders declined 46.8% to R962m.
The government’s low infrastructure spend has hit Raubex’s construction division, which is made up of road surfacing and rehabilitation, and construction and earthworks businesses. Speaking after the release of the company’s results for the six months ended August 31, in which the two divisions reported huge decreases in revenue, CEO Rudolf Fourie said on Monday the group had secured the R500m civil works contracts and was in negotiations for additional ...