Picture: REUTERS/DAVID GRAY
Picture: REUTERS/DAVID GRAY

JSE-listed infrastructure development group Raubex said on Thursday interim headline earnings per share (heps) to end-August could almost double, amid a boost from contract work from independent power producers (IPP).

Heps was expected to rise by between 70% and 90% to a range of 60.7c and 67.8c, the company said in a statement.

The group’s infrastructure division experienced strong growth, mainly as a result of work related to IPPs, it said, though stable conditions had also persisted in the affordable housing and commercial building sectors.

Tough conditions remained in the roads and earthworks division, with the company reporting excess capacity compared to the volume of work on hand. Cost cutting had reduced losses in this division.

Community unrest had affected quarry operations during the period, and there had been considerable margin pressure and a decrease in operating profit in the company’s materials division, Raubex said.

“The company has maintained a strong balance sheet throughout the period and is well positioned to participate in future opportunities in the SA construction sector,” the statement read.

Some opportunities on tender include extensive upgrades to the N2/N3 road network in KwaZulu-Natal, as well as upgrades at OR Tambo International Airport and Cape Town International Airport.

Raubex’s share closed at R19.35 on Wednesday, having risen 13.82% so far in 2019.

gernetzkyk@businesslive.co.za