McConnell Dowell Group Annual Review 2021 3 Australia The Australian construction sector remained operational despite various state-based COVID-19 lockdowns. Revenue and operating earnings for the Australian business unit both increased by more than 100%, with revenue growing to $981 million. Collaborative contracting approaches, such as alliances and early contractor involvements, continued to be preferred by many customers, reducing the overall risk profile for the business in Australia. The business was awarded projects in all regions across Australia and in all its specialist capabilities, highlighting the diversity of the business unit. Additional water and energy sector opportunities began to emerge, and this trend is expected to continue as climate change and energy diversification becomes more pressing and prevalent. Contracts awarded include the Kidston Pumped Hydro Storage and BMA’s Hay Point Coal Terminal projects in Queensland; the Lake Way, Karlawinda and Murrin Murrin gas pipeline projects in Western Australia; the Overseas Passenger Terminal in New South Wales; and the Granite Island Causeway Renewal in South Australia. In addition to the above, the business secured additional works packages on the Western Program Alliance in Victoria, Public Transport Program Alliance and the SA Water Frameworks in South Australia. South East Asia Revenue in South East Asia increased by 24% to $165 million despite the uncertain market conditions and COVID-19 related lockdowns across the region. The business unit secured the full scope of work on the Jurong Regional Line (J108) project for Singapore’s Land Business Unit Overview Transport Authority. The Batangas LNG Gas Importation Terminal was secured in the Philippines, as was additional works on the Palembang Wastewater Treatment Plant in Indonesia. Despite its excellent growth and strong financial positioning for FY22, McConnell Dowell’s South East Asian business unit has restructured its organisation as it anticipates on-going market volatility and uncertainty throughout the region due to potential COVID-19 outbreaks and ongoing international travel restrictions. For the next 12 months, the South East Asian team will focus on safe and profitable delivery of its work in hand while continuing to be highly selective in its bidding. New Zealand and Pacific Islands Revenue for the New Zealand and Pacific Islands business unit decreased by 18% to $206 million, primarily due to COVID-19 delaying several key targets. Despite this, the business improved its profitability and liquidity. The business successfully delivered highly complex pipe-jacking projects at St Marys Bay and Snells-Algies, cementing earlier successes at Army Bay, and confirming the Group’s status as a pre-eminent tunnelling contractor in New Zealand. The on-time completion of the landmark Wynyard Edge redevelopment ahead of the successful 2021 America’s Cup defence by Team New Zealand was another highlight. New project awards included the early works packages of the strategically important Papakura to Pukekohe Rail Electrification project for state-owned KiwiRail; preferred status on Northern Pathway, a major pedestrian/cycleway in Auckland (with final contract award due early 2022); re-establishment of the fuel line works at Auckland International Airport; and the ASPA asphalt works and Futiga Concrete Road in American Samoa. Repeat work was also secured with Watercare with the award of the Scott Cummins CEO
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