Esor releases 60 million for Kusile project - CNBC Africa

Esor releases 60 million for Kusile project


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Esor released 60 million rand towards Kusile project. PHOTO: ssi-schaefer

This also resulted in a net cash inflow for the group.

“A significant portion of the Esor Civils order book remains reliant on Kusile. All legacy contract issues with Eskom have been resolved and an agreed way forward is in place,” the company said.

“During the period two of the four Kusile projects were successfully completed, namely the joint venture projects for bulk earthworks and crushing. The remaining projects are for the terrace underground facilities and general service piping.”

The delays and disruptions in the terrace underground facilities contract are being attended to and the company said it hopes the issues will be addressed soon.

(READ MORE: S.Africa’s Esor appoints new CFO)

Esor’s six months results showed a 22.2 per cent decline in revenue to 789.8 million rand ended August 2014 from 1.01 billion rand for the same six months in 2013.

Despite the decline in revenue, Esor reported an improved performance from the previous six month period.

The company also revealed that it concluded all three of the legacy loss-making contracts and completion certificates have been received.

Esor says looking ahead the group has a consolidated two-year order book of 2.4 billion rand. With the resolution of certain aspects such as the conclusion of the legacy loss-making contracts and the settlement of the Kusile claims, they have positioned themselves for profitable future growth.

(READ MORE: Esor reports full-year headline loss per share)

“We do not foresee any major change in the market over the next six months and expect flat trading conditions in a still highly competitive local market.”

“Esor has strategically positioned itself in the Developments' division and is partnering with companies that add value to our pipeline,” said the company.