Leighton gains on winning Abu Dhabi coal contracts
Tuesday, 28 Jul 2009
Bloomberg reported that Leighton Holdings Limited reached a 6 month high in Sydney trading after winning 2 contracts worth a total USD 735 million.
Leighton surged as much as 4.2% on the Australian stock exchange before closing up 2.2% at AUD 28.42. The company will help build a hotel project in Abu Dhabi and provide coal mining services for BHP Billiton Limited in Australia’s Queensland state.
The Sydney based company said that Al Habtoor Leighton Group and JV partner Murray & Roberts Limited will build the AUD 1.8 billion St Regis Hotel and Residences on Abu Dhabi’s Saadiyat Island for the Tourism Development and Investment Company.
The project will be a fillip for Leighton, which on June 17th abandoned a venture with Tourism Development expected to generate at least USD 1.5 billion of revenue within 5 years. Leighton cut its full year profit forecast by 10% in May.
Al Habtoor Leighton said that “This award shows the Abu Dhabi market remains buoyant and we are ideally placed to take advantage of the opportunities in this market.”
Mr Justin Grogan spokesman said that Leighton, controlled by Hochtief AG of Germany has a 45% stake in Al Habtoor Leighton.
Leighton’s resources division won an AUD 300 million, 3 year contract extension at the Peak Downs coal mine, a project between BHP and Mitsubishi Corporation.
