Listing Rule 3.17 Shareholder Update for the 9 months to 30 September 2012

Transcription

1 6 December 2012 Richard Willcock Group Company Secretary Leighton Holdings Limited ABN Pacific Highway St Leonards NSW 2065 Australia PO Box 1002 Crows Nest NSW 1585, Australia T (02) F (02) ASX Market Announcements Australian Securities Exchange Limited Level 4 20 Bridge Street SYDNEY NSW 2000 Listing Rule 3.17 Shareholder Update for the 9 months to 30 ember 2012 Further to the release of the Company s results for the 9 months ended 30 ember 2012 to the Australian Securities Exchange on 30 October 2012, please find attached a copy of our Shareholder Update for the 9 months to 30 ember 2012 as at 31 October 2012 containing highlights during the period and various feature articles. This report is now in a printed format and will be mailed to shareholders today. Yours faithfully, R. Willcock Group Company Secretary

2 2012 SHAREHOLDER UPDATE SHAREHOLDER UPDATE FOR THE 9 MONTHS TO 30 SEPTEMBER 2012 AS AT 31 OCTOBER 2012

3 LEIGHTON HOLDINGS LIMITED SHAREHOLDER UPDATE AS AT 31 OCTOBER Macarthur Wind Farm Victoria, Australia Construction: Leighton Contractors FINANCIAL

4 SUMMARY Key performance features for the nine months ended 30 ember Total Revenue # 9 months to $16.9 billion Work In Hand # as at $45.3 billion Unaudited Unaudited 9 months 9 months to to % Income Statement information ($M) Change Revenue Group 13, , Joint Ventures and Associates 2, , Total Revenue 16, , Profit/(loss) before tax (394.0) 191 Income tax (expense)/benefit (50.4) 70.1 (172) Profit/(loss) after tax (323.9) 195 (Profit)/loss attributable to minority interests 8.6 (1.2) 817 Profit/(loss) attributable to members (325.1) Work in Hand (Backlog) ($M) Value of Work in Hand at end of period # 45, , As at As at Balance Sheet information ($M) Total assets 10, , Total liabilities 7, , Net assets 2, , Net tangible assets 2, ,578.7 (4) Net tangible assets per share ($) $7.36 $7.66 (4) Profit/(loss) Before Tax 9 months to $358.6 million Profit/(loss) Attributable to Members 9 months to $316.8 million Leighton Holdings Limited obtained approval from the Australian Securities and Investments Commission ( ASIC ) to change its financial year end date from 30 June to 31 December. As a result the current financial year of the Company commences on 1 January To ensure meaningful data comparability on a like for like basis, the unaudited key performance features for the nine months ended 30 ember 2011 have been presented for comparative purposes and have been derived from previously issued media releases and Australian Securities Exchange ( ASX ) announcements. # Includes the Group s share of Joint Venture and Associates (394.0) (325.1)

5 LEIGHTON HOLDINGS LIMITED SHAREHOLDER UPDATE AS AT 31 OCTOBER JULY JULY 2012 THIESS TO BUILD TOWNSVILLE HOSPITAL STAGES 3 & 4 Thiess was awarded a $205 million contract to construct stages three and four of the Townsville Hospital Redevelopment. Under the contract, Thiess will deliver the hospital s Clinical Support and Services Building, Cancer Care Expansion (Oncology), Clinical Ward Block (South Block) and Pathology Laboratory Expansion. 4 JULY 2012 LEIGHTON CONTRACTORS AWARDED JAX BULK SAMPLE CONTRACT QCoal awarded Leighton Contractors Mining Division a contract for the Jax coal bulk sample project in Queensland s northern Bowen Basin. The contract includes construction of the mine industrial area, mining operations, management, mining fleet and services supply for the bulk sample project including drill and blast for mining of overburden and coal. It also includes supply and operation of temporary facilities for coal crushing and screening. LEIGHTON ACTS ON GOVERNANCE FAILURE IN LEIGHTON OFFSHORE PTE LIMITED Leighton Holdings announced that its internal review of the Iraq projects undertaken by its subsidiary, Leighton Offshore Pte Limited, identified instances of failures to meet governance standards in respect of the proper documentation of contractual arrangements. As a consequence, a senior manager was dismissed. 9 JULY 2012 LEIGHTON ANNOUNCES SUCCESSFUL SALE OF THIESS WASTE MANAGEMENT Leighton Holdings announced the sale of Thiess Waste Management to Remondis AG & Co KG for a total purchase price of $218 million. The sale is subject to certain conditions, including novation of major customer contracts. Completion is expected to occur during the current financial year. 10 JULY 2012 LEIGHTON AWARDED A$122 MILLION COAL- FIRED POWER PLANT CONSTRUCTION PROJECT IN THE PHILIPPINES Leighton Contractors (Philippines), a part of the Leighton Asia, India and Offshore Group, secured more than A$122 million worth of construction work for a coal-fired power plant project in Davao City and Davao del Sur in the Philippines. 23 JULY 2012 THIESS AWARDED $2.3 BILLION JELLINBAH GROUP MINING CONTRACT Thiess was awarded a $2.3 billion contract to extend mining operations at Jellinbah Group s Lake Vermont coal mine in Queensland s resource-rich Bowen Basin. 25 JULY 2012 AIRPORTLINKM7 OPENS TO TRAFFIC Leighton Holdings reported that the AirportlinkM7 was officially opened to traffic on 24 July It is the largest road infrastructure project and one of the most complex engineering feats ever completed in Australia, and is the centrepiece of a multi-billion dollar investment in new transport infrastructure in Brisbane. 2 AUGUST 2012 HLG PART OF CONSORTIUM AWARDED QR1.5 BILLION (US$412 MILLION) PEOPLE MOVER SYSTEM IN QATAR A consortium including Habtoor Leighton Group (HLG) was awarded a QR1.5 billion (US$412 million) contract for the design, construction, installation, commissioning, and operation and maintenance of a new People Mover System in Doha s Education City for Qatar Foundation for Education, Science and Community Development. 6 AUGUST 2012 VISIONSTREAM SECURES TELSTRA WIDEBAND CONTRACT Visionstream, a subsidiary of Leighton Contractors, signed a contract with Telstra for the provision of national Wideband and Dedicated Digital Network (DDN) works. This significant contract is expected to be worth $120 million over three years with an optional two year extension. 7 AUGUST 2012 SOLID EARNINGS AND REPOSITIONING FOR GROWTH Leighton Holdings announced a net profit after tax (NPAT) of $115 million for the six months ended 30 June 2012, in line with the guidance provided in March AUGUST 2012 RETIREMENT OF ASHLEY MOIR AS GROUP COMPANY SECRETARY OF LEIGHTON Leighton Holdings confirmed the retirement of long-serving Group Company Secretary, Mr Ashley Moir. Mr Moir s retirement follows a successful transition of his responsibilities to Mr Richard Willcock. Mr Moir has served as the Group Company Secretary of Leighton Holdings Limited since April NEWS AND

6 MEDIA RELEASES 3 SEPTEMBER SEPTEMBER SEPTEMBER SEPTEMBER 2012 HLG AWARDED QR246 MILLION (US$68 MILLION) RESERVOIRS PROJECT IN DOHA The Habtoor Leighton Group (HLG) was awarded a QR246 million (US$68 million) contract for the construction of additional reservoirs at Al Duhail and Umm Qarn Reservoir and Pumping Stations for the Qatar General Electricity and Water Corporation. 6 SEPTEMBER 2012 DESALINATION PLANT PRODUCES FIRST SAMPLES OF DRINKING WATER The production of drinking water recently commenced at the Victorian Desalination Plant near Wonthaggi. 13 SEPTEMBER 2012 HABTOOR LEIGHTON GROUP APPOINTS NEW MANAGING DIRECTOR Habtoor Leighton Group (HLG) announced the appointment of Mr Jose Antonio Lopez- Monis as the Group s new Managing Director. Mr Lopez-Monis will replace Mr Laurie Voyer who has advised the HLG Board of his decision to return to Australia at the completion of his contract in December THIESS WINS WYNYARD WALK CONTRACT Thiess won a $154 million Transport for New South Wales contract to build a vital pedestrian link between Wynyard Station in Sydney s CBD to the western CBD and the multi-billion dollar waterfront development at Barangaroo. 17 SEPTEMBER 2012 LARGE SCALE PRODUCTION OF DRINKING WATER HAS STARTED AT VICTORIAN DESALINATION PLANT Leighton Holdings announced the first large scale production of drinking water from the Victorian Desalination Plant. 18 SEPTEMBER 2012 THIESS WINS SANTOS GLNG TUNNELLING CONTRACT Thiess was awarded a $134 million contract by Saipem Australia Pty Ltd, to construct a tunnel for the Santos GLNG Project in Gladstone. HLG JV AWARDED SAR1.18 BILLION (US$316 MILLION) HEALTHCARE PROJECT IN KINGDOM OF SAUDI ARABIA Habtoor Leighton Group (HLG), operating as Leighton Middle East Contracting, was awarded a healthcare project worth SAR1.18 billion (US$316 million) by the Ministry of Health King Fahad Medical City. The project, referred to as PPNNCC, will be delivered in joint venture with Al Latifia Trading and Contracting. LEIGHTON TO DELIVER NEW AUSTRALIAN EMBASSY IN INDONESIA PT Leighton Contractors Indonesia, part of the Leighton Asia, India and Offshore Group, secured a contract for the construction of the iconic new Australian Embassy in Jakarta. The contract is valued at approximately A$230 million and will be delivered as a joint venture between PT Leighton Contractors Indonesia and PT Total Bangun Persada Tbk. 25 SEPTEMBER 2012 LEIGHTON EXPLORING SALE OF TELECOMMUNICATIONS INFRASTRUCTURE ASSETS Leighton Holdings announced that, following the completion of a detailed strategic review of its telecommunications infrastructure assets, the Board intends to explore a potential divestment of Nextgen Networks, Metronode and Infoplex. LEIGHTON CONTRACTORS AWARDED $1.5 BILLION CONTRACT FOR MINING AND OPERATIONS AT PILBARA MINE Leighton Contractors was awarded a $1.5 billion full service, five-year contract with two-year extension option to produce 20 million tonnes per annum (Mtpa) of iron ore at the Firetail deposit for Fortescue Metals Group. DRINKING WATER FROM THE DESALINATION PLANT FLOWING TO CARDINIA AquaSure, the consortium developing the Victorian Desalination Project, announced that drinking water has now started to flow from the plant into the 84km underground pipeline and into Cardinia Reservoir. 28 SEPTEMBER 2012 LEIGHTON FINALISES SALE OF THIESS WASTE FOR $218 MILLION Leighton Holdings announced the completion of the sale of Thiess Waste Management to Remondis AG & Co KG for a total purchase price of $218 million. HLG AWARDED OIL AND GAS CONTRACT IN IRAQ Habtoor Leighton Group (HLG) has been awarded a sub-contract for the construction of infrastructure in Southern Iraq and is part of an engineering, procurement and construction project to deliver a central production facility. 5

7 LEIGHTON HOLDINGS LIMITED SHAREHOLDER UPDATE AS AT 31 OCTOBER Lai Chi Kok Drainage Tunnel Hong Kong Construction: Leighton Asia

8 SEPTEMBER 2012 UPDATE AS AT 31 OCTOBER 2012 Leighton reports $317 million profit, remains on track to meet guidance. Leighton Holdings Limited announced Net Profit after Tax (NPAT) for the nine months ended 30 ember 2012 of $317 million 1, compared to a loss after tax of $325 million in the prior comparable period 2. Commenting on the results, Chief Executive Officer, Mr Hamish Tyrwhitt said that the Group was continuing to deliver solid operating results, make progress on legacy issues, and advance its strategy to stabilise, rebase and grow the business. In the three months to ember 2012, we completed Airport Link and substantially advanced the Victorian Desalination Project with the granting of Preliminary Commercial Acceptance following commissioning of stream one. Last week, we completed testing on stream two and we remain on target for hand-over by the end of this year. While conditions are challenging in the Middle East, the Habtoor Leighton Group was awarded a number of new projects, including construction of a People Mover System in Qatar and a medical centre in Saudi Arabia. Progress also continues to be made on the recovery of legacy receivables, Mr Tyrwhitt stated. Our work in hand as at 30 ember 2012, was $45.3 billion, which was broadly in line with June 2012 levels after adjusting for the sale of Thiess Waste Management (TWM) and foreign exchange movements. Major project wins since 1 July 2012 include contract mining at the Lake Vermont coal mine and Solomon iron ore mine in Australia, construction of the Australian embassy in Jakarta and work on the GLNG and Ichthys gas projects, in Queensland and Western Australia respectively. While our addressable market continues to provide us with opportunities in Australia and overseas, we are experiencing some minor slowdown in activity in the mining sector, albeit this has not impacted on our FY 2012 forecast. Our underlying NPAT 3 guidance for the year to 31 December 2012 is reconfirmed for $400 $450 million. Importantly, our strategy of stabilise, rebase and grow is aimed at net margin expansion rather than top-line growth including cost and overhead reductions across the Group. To this end, our immediate focus is on strengthening the balance sheet, with initiatives to reduce working capital requirements, tighten capital allocation and extend the duration of our financings. We finalised the sale of TWM for a profit of $115 million before tax and $81 million after tax. We have also sought expressions of interest for our non-core telecommunications infrastructure assets in line with our capital recycling strategy. Additionally, we have completed or extended a number of loan facilities. Moving ahead, as we rebase the business and rebuild our financial strength, we are developing the foundations for a successful and sustainable future, concluded Mr Tyrwhitt. 1 Unaudited NPAT for the nine months ended 30 ember Unaudited NPAT for the nine months ended 30 ember 2011, which is presented for comparative purposes, is derived from previously issued media releases and Australian Securities Exchange ( ASX ) announcements. 3 Underlying NPAT excludes capital gains and impairments 7

9 STOP PRESS FINANCING INITIATIVES Since the announcement of the financial results to the end of the third quarter on 31 October 2012, Leighton Holdings has announced two significant financing initiatives. The Company successfully signed a A$1.4bn three-year syndicated performance bond facility (the Facility ). The Facility doubles the size of the existing A$700m syndicated performance bond facility which it refinances. Leighton Holdings Chief Executive Officer, Mr Hamish Tyrwhitt, said that bonds and guarantees are an important element of the business and the Company s ability to access such significant facilities was a source of competitive advantage. We were very pleased with the support we received for the Facility which reflects the Leighton Group s standing in the market as a leading international contractor, he said. Bonds and guarantees are provided to our clients as a form of surety for the contractual obligations that we undertake. Having this additional capacity provides the Leighton Group the ability to deliver the significant work in hand capacity it has, said Mr Tyrwhitt. The syndication targeted a diverse range of banks in the Australian and Asia-Pacific loan market. A total of nineteen lenders participated, ten of which are new lenders to the Facility. Australia and New Zealand Banking Group Limited acted exclusively as the Co-ordinating Arranging Bank and fronted 15 financiers in the Facility. The Mandated Lead Arrangers and Bookrunners are Australia and New Zealand Banking Group Limited, The Hong Kong and Shanghai Banking Corporation Limited, Mizuho Corporate Bank Ltd, and The Royal Bank of Scotland plc. The Company also priced a US$500m guaranteed senior note issue in the United States Rule 144A debt capital markets. The notes have a coupon of 5.95% for a term of ten years and are guaranteed by Leighton Holdings and certain of its subsidiaries. Mr Tyrwhitt said that the issuance of the notes represents an important step in executing the Leighton Group s debt strategy. The notes provide an attractive source of long-term debt capital for the Group and diversify our funding profile, he said. Leighton Holdings will use substantially all of the proceeds from the notes to refinance existing short-term debt facilities. Settlement of the offering occurred on November The notes referenced above and the guarantees thereof have not been, and will not be, registered under the US Securities Act of 1933, as amended (the US Securities Act ), or the securities laws of any state of the United States, and may not be offered or sold in the United States, or to, or for the account or benefit of a US person (as defined in Regulation S under the US Securities Act), except in a transaction exempt from the registration requirements of the US Securities Act and applicable state securities laws. IMPAIRMENT OF BRISCONNECTIONS BrisConnections ( BCS ), the concessionaire company that operates and maintains Brisbane s AirportlinkM7, announced on 12 November 2012 that it was entering into formal negotiations with its lenders and other key stakeholders regarding potential reconstruction options, taking into account that on present traffic levels and operating costs, the enterprise value may be less than the outstanding debt. As a consequence, Leighton Holdings confirms that it has undertaken a review of the carrying value of its deferred equity commitment to BCS. The review has determined that Leighton Holdings will impair the remaining $63m book value of its deferred equity commitment to BCS. The pre-tax impairment of $63m will be offset against the pre-tax capital gain of $115m earned on the recent sale of Thiess Waste Management. The impairment will have no impact on Leighton Holdings previously advised underlying Net Profit After Tax guidance of $400m to $450m for the financial year ended 31 December Underlying NPAT excludes capital gains and impairments.