Carillion in Line for Oman, U.K. Contracts Worth $311 MillionNatasha Doff
Carillion Plc, a British construction and services provider, won a 92 million-pound ($149 million) contract to build a hotel in Oman and was named preferred bidder for work on a U.K. program worth as much as 100 million pounds.
Carillion will begin developing the Kempinski Wave Hotel in Muscat, Oman, this month on a 40,000-square-meter plot, under a 24-month contract, the company said in a statement today. A U.K. energy-saving program for local authorities led by West Sussex County Council in England may begin in early 2014, and work would be carried out under a 10-year contract, the company said said in a separate statement.
“Our order book and pipeline of contract opportunities both remain strong and continue to support our expectations for 2013 and our medium-term targets for growth,” the Wolverhampton, England-based company said today.
The U.K. energy-saving program would help as many as 17,000 households by 2017, potentially rising to 680,000 over the next 25 years, Carillion said.
The company, which employs about 40,000 people, has been expanding in the Middle East and Canada to offset a drop in construction orders in its U.K. home market. The Middle East contributed 7.1 percent of total revenue last year, compared with 5.3 percent in 2011, according to data compiled by Bloomberg.
The company announced today it will restructure its energy services operations before the end of the year in response to delays in the government’s Green Deal initiative, which helps householders and business owners make energy-saving improvements. Carillion forecast non-recurring charges from the restructuring of about 40 million pounds in 2013.
The company’s shares fell 0.8 percent pence to 313.1 pence at 11:29 a.m. in London, valuing Carillion at 1.35 billion pounds. The stock has dropped 1.2 percent this year while the FTSE 250 index has surged 20 percent.