- Raubex's operations have been boosted by activity in the construction and development sector.
- The company is developing road projects for state-owned road agency Sanral.
- It says it is encouraged by the current tender activity in the market and anticipates further contract awards.
Improved activity in the construction sector has given Raubex a shot in the arm, with the infrastructure development company announcing that it expects a significant jump in earnings for the first half of 2021.
The company, whose major projects include road infrastructure development for the South African National Roads Agency (Sanral) said on Monday its earnings per share would be at least 90% higher and headline earnings per share were expected to edge up 100% higher compared to the pre-Covid-19 comparative period.
"The increase in earnings is a result of the group's diversified business model allowing it to benefit from the increased tender activity in the construction sector, particularly ... materials-supply operations, including the supply of aggregates, asphalt and bitumen products."
The group says it started the financial period with efficient execution of its record order book during the first six months of the current financial year.
The project includes the construction of three major bridges and secondary roads. The development was commissioned by Sanral.
The developer stated that the upgrading and improvement of the Beitbridge Border Post Project in Zimbabwe, which was awarded at the end of 2020, was running on schedule.
"In the roads and earthworks division, the group has secured a strong order book supported by significant contract awards by Sanral at the end of 2020," the company said, stating that is was encouraged by the current tender activity in the market and anticipates further contract awards.
Raubex operates in South Africa, Namibia, Botswana, Zimbabwe, Zambia, Mozambique, Cameroon and Western Australia. It said the infrastructure division had experienced "favourable conditions in the building sector" and was supported by the operations in Western Australia.
The delays in start-up of the Risk-mitigation IPP round of renewable energy projects in South Africa impacted the profitability of the renewables sector division, but the division is said to be well positioned to benefit from the roll out of round 5 of the work related to the Renewable Energy Independent Power Producer Procurement Programme later in the year.
Raubex shares hit R29.67 in mid-morning trade, after opening at R29.70.
The company is due to release its interim financial statements on 8 November.