Aveng, a Johannesburg-based construction, engineering, and mining company, has warned its shareholders of an expected loss for the year ended June 2023 due to setbacks in Southeast Asia, primarily from the Batangas liquefied natural gas (BLNG) terminal project.
- The BLNG project is expected to report a total operating loss of R1.3bn.
- Aveng had been making progress in its restructuring path to exit all its non-core businesses and focus on its two cash-generative core businesses: McConnell Dowell and Moolmans, its mining arm in South Africa.
- Aveng’s shares fell as much as 11% following the announcement.
- The company has been struggling with high debt levels and a difficult operating environment in South Africa’s construction industry.
- Aveng has been selling assets to reduce debt and has successfully renegotiated some of its borrowing facilities.
- The company is looking to expand its presence in Australia and New Zealand.
- Aveng’s management team is working to improve the company’s performance and is confident in the long-term prospects of the business.