Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Transfield wins $88 mln Chorus contracts

Transfield wins $88 mln Chorus contracts after protracted negotiations

By Paul McBeth

Feb. 27 (BusinessDesk) - Transfield Services, the ASX-listed infrastructure specialist, has signed two contracts worth $88 million with local telecommunications network operator Chorus to help build the ultrafast broadband network and rural broadband initiative.

The contracts include a five-year agreement to install the UFB network in Blenheim, Nelson, Rotorua, Taupo and Whakatane and a two-year agreement to deliver the remainder of the RBI, covering Waikato, Bay of Plenty, Taranaki, Wanganui, Marlborough and Tasman regions, the Sydney-based company said in a statement.

The companies have been negotiating the contract since early last year, during which time Transfield got a ‘please explain’ from the New Zealand firm when subcontractors working for Chorus downed tools after going unpaid for extended periods of time.

In April last year Chorus, which is responsible for rolling out around 70 percent of the national UFB project, signed six-year contracts with Leighton Holdings’ Visionstream and Downer EDI to build part of the UFB and RBI networks.

Transfield has been responsible for about 10 percent of Chorus’s build, and has also contracted to other UFB roll-out partners who have contracts for the remaining 30 percent of the rollout, including Enable in Christchurch and WEL Networks in the Waikato.

The Australian company today reported a profit of A$4.6 million in the six months ended Dec. 31, turning around a loss of A$246.7 million a year earlier. Its Australasian infrastructure unit, which includes telecommunications contracts in New Zealand, reported a 14 percent drop in underlying earnings before interest and tax to A$31.2 million on sales of A$1.09 billion.

“In New Zealand the telecommunications business delivered by increased volumes on the Ultrafast Broadband contracts, and experienced continued strong returns from maintenance work on the existing copper network,” Transfield said in its first-half report. “The outlook for the telecommunications sector remains strong, underpinned by continued volumes from the broadband rollouts in both Australia and New Zealand.”

The ASX-listed shares sank 8.8 percent to 88 Australian cents. The stock is rated an average ‘hold’ based on 12 analyst recommendations compiled by Reuters, with a median target price of A$1.16.

This week Chorus said it was 24 percent through the rollout of the fibre network, having passed 199,000 premises as at Dec. 31, with 259,000 end users within reach of UFB. The build is estimated to cost between $1.7 billion and $1.9 billion, and Chorus is looking at ways to bring down those costs, including the use of alternative methods such as overhead lines.

Chorus shares slipped 0.7 percent to $1.485 on the NZX.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Finance: Major Campaign To End "Gross Overtaxation Of Savings"

The campaign – which includes a special web site through which New Zealanders can e-mail their own and other MPs and party leaders – is backed by Age Concern, Consumer NZ, the Financial Services Council and the Taxpayers’ Union. More>>

ALSO:

Scoop Business: Leighton-Led WGP To Build, Manage Transmission Gully

The Wellington Gateway Partnership, led by a unit of ASX-listed Leighton Holdings, has won the $1 billion contract to build the Transmission Gully road north of Wellington. More>>

ALSO:

Gareth Morgan: The Government’s Fresh Water Policy – Revisited

Fresh water quality is the latest area to be in the sights of Gareth Morgan and his research organisation The Morgan Foundation... They found that the fresh water policy was a bit murkier than the Environment Minister let on. More>>

ALSO:

Interest Rates: RBNZ Hikes OCR To 3.5%, ‘Period Of Assessment’ Now Needed

Reserve Bank governor Graeme Wheeler raised the official cash rate as expected, while signalling a pause in rate hikes to assess the impact of moves so far this year. The kiwi dollar sank after Wheeler said its strength was “unjustified” and that the currency could have “a significant fall.” More>>

ALSO:

Fonterra: Canpac Site 'Resize' To Focus More On Paediatrics

Fonterra is looking at realigning its packing operations at Canpac, in the Waikato, to focus more on paediatric nutritionals... The proposed changes could mean around 110 roles may not be required at the site which currently employs 330. More>>

ALSO:

Scoop Business: Postie Plus Brand Gets 2nd Chance With Well-Funded Pepkor

The Postie Plus brand is getting a new lease of life after South Africa’s Pepkor bought the failed retailer’s assets out of administration and said it will use its purchasing power to reduce costs of stock and fatten margins. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news