Trading update and contract win
05 January 2017
("Cape" or "the Group" or "the Company")
2016 full year results anticipated to be ahead of expectations; additional work scope awarded at Wheatstone
Cape plc (CIU.LN), an international leader in the provision of critical industrial services to the energy and natural resources sectors, today makes the following announcements:
- 2016 full year results are anticipated to be materially ahead of current market expectations
- Additional work scope awarded at the Chevron-operated Wheatstone natural gas project
Improved full year results
The Group experienced strong trading across its three regional businesses during the last two months of the year, with a particularly strong performance in Asia Pacific driven by high levels of project activity across the region. As a result, the Board now anticipates that the full year performance for 2016 will be materially ahead of current market expectations. This improvement in performance is supported by strong cash generation with a consequent positive impact on net debt.
As previously disclosed, the Board remains confident that the outlook for 2017 is encouraging.
Cape expects to announce its audited results for the full year ending 31 December 2016 on 15 March 2017.
Additional work scope at Wheatstone
Cape is delighted to announce the award of additional work packages on the Chevron-operated Wheatstone natural gas project, near Onslow, Western Australia.
Cape is now providing Access, Painting, Insulation and Fire Proofing services to the project until completion. The additional packages will see Cape extending its scope of services to include outside battery limits (OSBL), the Domestic Gas Plant and commissioning support. This follows the delivery of its existing contracted scope across the LNG trains inside the battery limits (ISBL).
The award reflects the Group’s performance on the contract to date, including safety (over 2 million man hours to date Lost Time Incident free), operational excellence, innovation in project management and cost savings through productivity and workforce management.
Regional Managing Director Neil Sadler commented: “We are proud to be continuing our work on one of the world’s largest construction projects and look forward to delivering a safe and successful project.”
Insurer PL industrial disease claims
There has been no material change to the position disclosed on 18 November 2016 in respect of the insurer PL industrial disease claims.
This announcement contains inside information.
Cape plc +44 (0) 1895 459 500
Joe Oatley, Chief Executive
Michael Speakman, Chief Financial Officer
Ian Wood, Head of Investor Relations
Buchanan +44 (0) 207 466 5000
Bobby Morse, Ben Romney, Chris Judd
Forward looking statements
Any forward looking statements made in this document represent the Board's best judgement as to what may occur in the future. However, the Group's actual results for the current and future fiscal periods and corporate developments will depend on a number of economic, competitive and other factors, some of which will be outside the control of the Group. Such factors could cause the Group's actual results for future periods to differ materially from those expressed in any forward looking statements included in this announcement. For details of the Group’s principal risks and uncertainties, please see pages 18 to 25 of the Group’s 2015 Annual Report and Accounts.
Cape (www.capeplc.com), which is premium listed on the main market of the London Stock Exchange, is an international leader in the provision of critical industrial services principally to the energy and natural resources sectors. Our multi-disciplinary service offering includes access systems, insulation, specialist coatings, passive fire protection, refractory linings, mechanical services, environmental services, oil and gas storage tanks and heat exchanger replacement and refurbishment. Cape employs c.16,400 people working across 19 countries and in 2015 reported adjusted revenue of £711.4 million.