McConnell Dowell 2018 Annual Review

Growth across the region is multifaceted with a strong pipeline of prospects, particularly in both Singapore and Indonesia. South East Asia operations experienced an 11% increase in revenue to AUD263 million (2017: AUD237 million), driven by strong progress on the Tuas Bridge, Marina Bay Sands, Rapid Solid Product Jetty and Nakhon Ratchasima Pipeline Projects. Strong operating margin and EBIT were generated across the projects portfolio, however, these results were negatively impacted by underperformance on two underpass projects in Singapore and a mechanical services contract in Malaysia. The Tangguh LNG export jetty continues to advance but is experiencing schedule impacts associated with the remote and difficult site location. The business unit secured new contracts in Singapore including a tunnel at Jurong Island for Sembcorp and the VTB Submarine Pipeline Project to be installed at the greenfield ExxonMobil CRISP Facility. Tendering levels remain high, but the business continues to experience strong competition across all market sectors and countries in the Region. The South East Asia Business Unit maintains the capability and capacity to execute projects across all market sector offerings: marine, pipelines, tunnels and underground, SMP and civil and infrastructure. The business unit focuses on select opportunities where it can demonstrate a competitive advantage in complexity, scale and intricacy of the work. The Middle East operations, which is operated in association with Dutco, and forms part of the South East Asia Business Unit continues to perform satisfactorily. Active Projects Marina Bay Sands Project, Singapore Sims Rd Underpass, Singapore Tuas Road Bridges, Singapore Petronas RAPID 12B Solid Product Jetty, Malaysia Nakhon Ratchasima Pipeline Extension, Thailand Orchard Boulevard Underpass, Singapore Great World City Underpass, Singapore Mechanical and Civil Works for Toyo RAPID Cracker, Malaysia Tangguh LNG Export Jetty EPC, Singapore ADCO Flowlines and Wellhead Installation, Dubai ExxonMobil VTB Submarine Pipeline, Singapore South East Asia & Middle East Stephen Rogers Manager Director, South East Asia Business Unit