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(Alliance News) - Balfour Beatty PLC on Thursday said it has traded in line with expectations so far in 2024, as it makes progress on major deals.
The London-based infrastructure construction contractor expects an increase in earnings for 2024.
"Since the start of the year, Balfour Beatty has made progress on several major projects which align strategically to the group's growth markets, and for which material orders are expected to follow," it said.
Over the first three months of 2024, Balfour's average monthly closing net cash balance was GBP756 million, compared to an average of GBP700 million last year. The closing net cash balance at the end of 2023 was GBP842 million.
"The board continues to expect 2024 average cash to be roughly in line with 2023, reflecting an expected working capital outflow, and for the GBP100 million share buyback to be completed by the end of the year, with approximately GBP50 million completed to date," it said.
Balfour's power transmission and distribution business has begun early contractor involvement works on nine electricity transmission projects in the north of Scotland. These are part of an accelerated strategic transmission investment framework for Scottish & Southern Electricity Networks, owned by SSE PLC.
Elsewhere, it has received a "letter of intent" to move to the next phase of a power project in Teesside, north east England. The Net Zero Teesside Power is being developed by BP PLC and Equinor ASA.
Balfour added: "In partnership with Technip Energies and GE Vernova, Balfour Beatty will construct a highly efficient combined-cycle plant, integrated with a state-of-the-art carbon capture plant. Final contract award will be subject to receipt of regulatory clearances and final investment decisions being taken later this year."
In addition, the firm has been picked a construction partner by Rolls-Royce Holdings PLC for expansion work in Raynesway, Derby. The work is needed "needed to meet the growth in demand from the [UK] Ministry of Defence", following the Aukus UK, US and Australia military pact.
Balfour added: "As part of the package of works, which will be executed in stages over the next eight years, Balfour Beatty will deliver infrastructure enabling works, build new manufacturing and office facilities, and redevelop existing industrial buildings on site. This will increase Rolls-Royce's capacity to manufacture reactor components for nuclear submarines."
Balfour shares traded flat at 382.00 pence each in London on Thursday morning.
By Eric Cunha, Alliance News news editor
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