WBHO’s Australian roads project goes down under
The construction group’s earnings could fall by between 80% and 100% after underestimating costs at its Australian roads project
Wilson Bayly Holmes-Ovcon (WBHO), the local construction industry’s beacon of hope, dropped a bombshell on Tuesday with the announcement that its second half of 2018 earnings could fall to zero because of losses in an Australian roads project. The announcement comes two weeks before the group releases its results for the six months to December.
In a statement to shareholders, WBHO — by some measure one of the better performing construction companies — said its performance in the interim period took a knock from the OSAR Western Roads infrastructure project in Melbourne, Australia. The A$1.8bn project entails eight high-priority road upgrades, road widenings, and intersection upgrades. WBHO is responsible for the project’s construction works. The project also includes the upgrade and duplication of six suburban arterial roads and the construction of two interchanges. “The completion of contract anticipated loss is due to the interpretation of the technical specifications within...
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