Raubex‘s increase in building activity follows after the company’s unexpected market slump during the Covid-19 pandemic. The infrastructure developer anticipates a considerable increase in profitability in the first half of 2021.
The company’s pre-Covid-19 profits per share will be at least 90% higher. This follows headline earnings per share reported to be at least 100% higher. One of the company’s primary efforts is road infrastructure development for the South African National Roads Agency (Sanral).
Increased tender activity in the construction business has also benefited the company. It is particularly prominent in materials-supply operations such as aggregates, asphalt, and bitumen products. This comes as a result of its broad business strategy.
According to the organisation, the first six months of the current fiscal year were marked by the successful execution of the firm’s record order book.
Raubex’s increase in building activity includes the Musina ring road. This road redirects the N1 traffic around the bustling border town in northern Limpopo. It proposes building three main bridges as well as ancillary highways. Sanral was the initiative’s driving force.
The developer also says that the upgrading and repair of Zimbabwe’s Beitbridge Border Post Project, cleared for completion by the end of 2020, is on schedule.
In addition, the firm claimed that it has a solid order book in the roads and earthworks sector. This is supported by substantial contract wins from Sanral at the end of the 2020 year. It was also boosted by recent market tender activity, which suggested that additional contracts would be granted.
Raubex has provided services for South Africa, Namibia, Botswana, Zimbabwe, Zambia, Mozambique, Cameroon, and Western Australia. According to the firm, the infrastructure segment enjoyed “favourable building circumstances” and was supported by activity in Western Australia.
Delays in the start-up of the Risk-mitigation IPP round of renewable energy projects in South Africa harmed the division’s profitability.
After starting at R29.70, Raubex shares fell to R29.67 in the mid-morning. However, it is reported to be well-positioned to profit from the activities connected to the Renewable Energy Independent Power Producer Procurement Programme, which is set to begin later this year.
Raubex is expected to disclose its interim financial results in early November.