New orders boost Downer

Managing director Geoff Knox said that, since February, the company had secured more than $1 billion of work and was in a preferred position on over $3.5 billion of projects it expected would be awarded in the next few months. “Our engineering division has been awarded over $200 million worth of work in the energy and renewable energy sectors, including a contract valued at over $100 million for the design and construction of 111 wind turbine generators as well as access roads and civil and electrical balance-of-plant works at Collgar Wind Farm in central Western Australia,” he said.Downer’s engineering division has also been selected as a panel member by Powerlink for major transmission projects in Queensland for the next five years.“This is the first major contract awarded under Powerlink’s transmission line panel agreement after the conclusion of the PAC agreements that were in place for the past four years,” Knox said.The contract is for the design and construction of a combined 132/275kV double circuit transmission line from Yabulu South to Ingham in north Queensland. The works also include the removal of an existing 132kV line.Knox said the rail division had achieved further sales of coal haulage locomotives, to be delivered in 2011, through the extension of an existing contract.“Downer’s Works division has also secured a $50 million contract for road surfacing and traffic control services on Brisbane’s Airport Link, Northern Busway (Windsor to Kedron) and Airport roundabout upgrade projects,” he said. In addition, the company has secured a three-year contract for the maintenance, resurfacing and emergency response winter services on State Highway 5 in New Zealand.“These long-term road maintenance contracts across Australia and New Zealand further strengthen Downer’s recurring revenue base and validate the group’s Asia-Pacific strategy,” Knox said.Downer has more than $16 billion of work in hand, excluding preferred position status.Earlier this week, the company announced it has been named the preferred tenderer on a six-year deal with Fortescue Metals Group for contract mining at its Christmas Creek project in the Pilbara.Downer said contract negotiations for the project, valued at some $3 billion, were still to be completed but were expected to be finalised next month with work scheduled to begin in July.

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