CIG highlights progressive growth outside of S.Africa - CNBC Africa

CIG highlights progressive growth outside of S.Africa


by admin 0

CIG provides services in renewable energy, fossil generation and power transmission, among others. PHOTO: Student Energy

“The group has made substantial progress on its objective of diversifying its geographic footprint and earnings from outside South Africa and to diversify its portfolio of operations across different sectors,” [DATA CIL:CIG] said.

“In the current year, 56 per cent of profits after tax were earned from outside South Africa and the oil and gas division now makes a significant contribution to our group results.”

The services, infrastructure and materials provider also saw group revenue increase by 29 per cent to 2.6 billion rand for the year ending 31 August 2014 from 2.0 billion rand for the same period in 2013.

(WATCH VIDEO: Consolidated Infrastructure Group delivers healthy FY earnings)

“CIG has a diversified portfolio of operations. The operations are involved in power and electrical, oil and gas and building materials and post year-end has acquired an operation in the railway sector,” it said.

“Demand from the residential sector and growth in market share boosted earnings from the building materials division. [It] benefited from the inclusion of the full year’s contribution from the Laezonia quarry – the complete turnaround of the operation will only be completed in the next financial year.”

Profit before taxation increased from 217 million rand in the 2013 year to 227 million rand in 2014 and profit for the year grew 50 per cent to 258 million rand from 171 million.

“The growth in profit was driven to a large extent by the results of Angola Environmental Servicos Limitada (AES),” said CIG.

(READ MORE: AES inclusion drives Consolidated Infrastructure’s profits)

Headline earnings attributable to ordinary shareholders increased to 255 million rand in 2014 from 170 million rand in 2013 while diluted headline earnings per share increased from 136 cents to 182 cents.

“While our businesses are exposed to strong growth drivers, it is difficult to fully anticipate the effects of possible austerity measures in South Africa and the effect of the financial pressure Eskom finds itself under. The impact of Ebola on our markets remains uncertain,” CIG said.

“We have experienced delays but we are monitoring the situation to ensure that our staff are not exposed to health risks. We approach the new financial year with optimism that our geographic and sector strategies are yielding results and we have sufficient capital to take advantage of opportunities.”