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

 

Housing Policy: Auckland Densification As Popular As Ebola, English Says

Finance Minister Bill English said calls by the Reserve Bank Governor for more densification in Auckland’s housing were “about as popular in parts of Auckland as Ebola” would be. More>>

ALSO:

Crown Accounts: NZ Government Deficit Smaller Than Expected In First Half

The New Zealand government's operating deficit was smaller than expected in the first six months of the financial year, as the consumption and corporate tax take rose ahead of forecast in December, having lagged estimates in previous months. More>>

ALSO:

Fruit & Veg Crackdown: Auckland Fruit Fly Find Under Investigation

The Ministry for Primary Industries (MPI) is investigating a find of a single male Queensland fruit fly in a surveillance trap in the Auckland suburb of Grey Lynn... MPI has placed legal controls on the movement of fruit and some vegetables outside of a defined circular area which extends 1.5km from where the fly was trapped in Grey Lynn. More>>

ALSO:

Scoop Business: Westpac NZ Reaches $2.97M Swaps Settlement

Westpac Banking Corp’s New Zealand unit has agreed to pay $2.97 million in a settlement with the Commerce Commission over the way the bank sold interest rate swaps to farmers between 2005 and 2012. More>>

ALSO:

Going Dutch: Fonterra Kicks Off $144M Partnership With Dutch Cheese Maker

Fonterra Co-operative Group, the world’s largest dairy exporter, has commissioned a new dairy ingredients plant in Heerenveen, in the north of the Netherlands, its first wholly-owned and operated ingredients plant in Europe. More>>

ALSO:

Scoop Business: NZ Retail Sales Beat Estimates

New Zealand retail sales rose more than expected in the fourth quarter, led by vehicle-related transactions, food and beverages, adding to evidence that cheap credit and a growing jobs market are encouraging consumers to spend. More>>

ALSO:

Delivery Cuts Go Ahead: 'Government Money Grab' From NZ Post

"It's a money grab by the Government as the shareholder of New Zealand Post" says Postal Workers Union advocate Graeme Clarke about the changes announced by NZ Post. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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