McConnell Dowell 2018 Annual Review

The region continues to exhibit good work opportunities, particularly in the transport infrastructure and resources sectors. The revenue of the Australia Business Unit increased by 79% to AUD587 million (2017: AUD328 million), delivering good financial performance. This reflected our selective approach to bidding and sound project execution on such projects as the Amrun Chith Export Facility in Far North Queensland, the Northern Gas Pipeline traversing in the Northern Territory and into Queensland, and the Murray Basin Rail Upgrade and Swanson Dock East Rehabilitation Works projects in Victoria. The Region secured several key projects throughout the year including Melbourne Airport Runway Development ECI Project and Abbotts Road level crossing removal (as part of the Western Program Alliance) in Victoria. In addition was the success securing the Public Transport Projects Alliance and Regional Bridges for Department of Planning, Transport and Infrastructure in South Australia. While recently awarded projects achieved planned performance, operating earnings were impacted by a small number of historic loss-making contracts which are close to being completed and fully resolved. The Business Unit is well placed to secure a range of projects across the Resource, Energy and Transport infrastructure sectors in 2019 and beyond as several State Governments continue to invest and the commodity cycle improves. Competition, however, is expected to increase in parallel with resource constraints as market activity lifts, thus reinforcing the need to selectively target projects where we can best leverage our capabilities. Active Projects Northern Gas Pipeline, Northern Territory Western Program Alliance, Victoria Amrun Export Facility, Queensland Melbourne Airport Runway Development Program (ECI Stage), Victoria Kidston Pumped Hydro Storage (ECI Stage), Queensland Public Transport Alliance, South Australia Dryandra Road Underpass, Queensland Swanson Dock East Upgrade, Victoria Jim Frith Manager Director, Australia Australia Business Unit