Order book stays strong despite inpact of election jitters in May
Carillion has announced a “significant increase” in revenue for the first half of 2015 after dodging fears of a slowdown in public sector work due to the general election.
The company, which also today revealed an £80m deal with BP in Oman, announced it was on track to deliver “healthy growth” in its full year results, with profit in line with market expectations. Carillion’s pipeline of work increased to more than £40bn, from £39.2bn at the beginning of the year.
The half year trading update comes as Carillion announced a deal with BP to build an £80m operational base for the oil giant in Oman.
Carillion subsidiary Carillion Alawi has been awarded a contract by BP to build the operational base and accommodation complex for its Khazzan gas project.
The contract involves the construction of accommodation facilities, including an operational base, a residential complex for 250 personnel and other infrastructure buildings in the Khazzan gas field, approximately 350km South West of Muscat. Work on the contract is expected to start in September 2015 and is scheduled for completion in mid 2017.
In a statement Carillion said: “The steady improvements in market conditions that we saw in 2014, have continued in 2015. We also continue to make good progress with mobilising a number of major contracts won in 2014, notably in support services.
“As expected, the pace of new order intake slowed in the first half of 2015, due to the effect of the UK General Election on public sector contract awards. However, our exceptionally strong work winning performance in 2014 meant that the Group entered 2015 with secured and probable orders worth £18.6 billion, record revenue visibility of 85 per cent and therefore well-positioned to manage the effect of the UK General Election.