Raubex rallies on contract awards

print

Raubex rallies on contract awards

Published Date: 2020-11-18 | Source: Stephen Gunnion | Author: Stephen Gunnion

Raubex rallies on contract awards

The construction and road building company says it is well positioned to participate in infrastructure projects announced by the government.

Raubex's shares gained as much as 13% yesterday after it said it won two SANRAL contracts worth R2.87 billion.

The contracts with the national roads agency are to upgrade a section of the N2 from KwaMashu Interchange to Umdloti River Bridge and part of the N3 from Cato Ridge to Dardanelles in KwaZulu-Natal. It said the awards increased its secured order book to R14.2 billion.

When it released its interim results earlier this month, the company said it was encouraged by recent contract awards and in participating in the government's plan to stimulate the economy through infrastructure spend. It said it was also well positioned to participate in the Strategic Integrated Projects (SIPs) announced by the government this year as well as the roll out of projects in the renewable energy sector.

The company increased its interim dividend despite swinging to a first-half loss after it generated a lot more cash from its operations.

Its shares retraced some of their gains to close 5.6% higher at R22.18.





Similar Stories