Kier: '6M 2015 profit as oil delays Saudi income'

Kier, which acquired Mouchel in June 2015, admitted low oil prices are "having an impact on the pipeline of opportunities" in the Middle East

Delayed payments from the Saudi market have hurt Kier's financials. [Representational image]
Delayed payments from the Saudi market have hurt Kier's financials. [Representational image]

The UK's Kier Group said its pre-tax profit for the six months to 31 December, 2015, was $25.8m following the cost of integrating its Mouchel business in June 2015. 

This is significantly lower than corresponding figures from 2014, worth $39.8m.

Kier, which also operates in the Middle East, has worked on the Al Jalamid Phosphate Mine in Saudi Arabia, besides projects in Dubai. 

During the year, Kier agreed upon the establishment of a joint venture company with the Investment and Development Authority of Sharjah (Shurooq). 

In a statement, the company admitted the slowdown in oil prices had impacted its Middle East operations. 

"The low oil price is having an impact on the pipeline of opportunities in the region," it continued.

"Cash receipts from public sector clients in Saudi Arabia have been slower than anticipated, but our ability to provide clients with access to export credit facilities supported by UK Export Finance is proving to be a key differentiator and has enabled quality work to be secured."

Haydn Mursell, chief executive of Kier, said the integration of Mouchel had cost $22.5m, but was now substantially complete, with key senior management and customers retained.


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