Leighton Asia News, October 2004 - Leighton Holdings

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David Savage Leighton Asia (Southern) Excellent performances from our operations in Malaysia and Indonesia ensure a solid result for the year. Malaysia made the most significant contribution on the back of improved performances of a number of projects, most notably the Asia Rare Earths decontamination project and our telecommunications base transceiver stations project for Maxis. During the year, we secured a US$100 million rail project between Rawang and Ipoh, and have made steady progress to date. The Duta Plaza (Avenue K) retail and commercial development in Kuala Lumpur was completed, as well as a new warehouse for BlueScope Steel. Our success in Malaysia was recognised when we were awarded the Malaysia Australia Business Council’s Business of the Year Award. The company was granted overseas headquarters (OHQ) status there, which provides us with numerous tax and operating advantages. Our commitment to providing our employees with a safe, healthy and positive working environment was underscored when we were presented with a major safety award by the World Safety Organisation. The award recognised our outstanding safety performance on the Teachers’ Housing project in Malaysia, where we achieved a company-record 18 million man-hours without a lost-time injury. Our Indonesian operation was a standout performer, producing a return significantly above our original targets. This success was based upon an outstanding result from the Cikampek to Cirebon double-tracking rail project in Java, which was completed some 11 months ahead of schedule. 2003/04 in review We increased production at the ABK Loajanan coal mine, which continues to perform well. In May, TANITOcoal awarded us a three-year contract for mining at the MSJ coal mine. We are completing the haul road for the mine under a separate contract, and expect to start production mining before the end of this year. In Sri Lanka, Caterpillar Power Systems awarded us a contract to construct an oil-fired power plant. The project is progressing well and has helped raise our profile in the country. Our objective for the forthcoming year will be to secure sufficient new work across our three geographic divisions to ensure that we are not reliant on the performance of any one particular market. David Savage Managing director The Cikampek to Cirebon rail project was a great success.
Successful year leads to positive outlook Leighton Asia (Northern) Record work in hand level underwrites business. The 2003/04 financial year was very successful for Leighton Asia (Northern). We secured more than US$350 million of new work, taking our work in hand to record levels and successfully underwriting the business for the next couple of years. In a year of numerous highlights, the performance of our Hong Kong operation stands out. We completed a number of important projects, with the Penny’s Bay site remediation project (in joint venture with Thiess Services) and the KCRC light rail project delivering outstanding returns. The Central Reclamation project in Hong Kong – our largest-ever project – recommenced during the year. The project had been suspended pending the outcome of a legal Tunnelling project for BP in Zhuhai, China. challenge to the Government’s plans, but it has now been cleared to proceed as originally intended. We also secured the US$235 million Eagle’s Nest Tunnel in Hong Kong and the US$260 million Wynn’s Casino project in Macau. Both projects are joint ventures. Significant progress was made on the Taiwan High Speed Rail project. This is due for completion in December and, to date, has produced an exceptional return. In the Philippines, the Manila North Tollway proceeded as scheduled and we expect to complete this major project ahead of program. In Vietnam, we secured a project with BlueScope Steel to design and construct a steel coating plant. This should be completed by the end of the year and we are hopeful that we can convert further work associated with this development. Our success on the Phu My 3 power station was recognised when we were presented the ANZ Business Excellence Award in Vietnam. We were awarded and successfully completed a tunnelling project for BP in Zhuhai, our first project in China for a number of years. Our aim for the year ahead will be to ensure we achieve our projected returns on all of our existing projects, whilst winning sufficient new work to maintain our healthy level of work in hand. Will Hamilton Managing director Will Hamilton page 9
Page 1 and 2: Leighton Asia News October 2004
Page 3 and 4: Mission moves to enlarge its food m
Page 5 and 6: The new casino is in a prominent wa
Page 7: Substantial site formation and slop
Page 11 and 12: “Nothing beats actually walking a
Page 13 and 14: The main challenges of the contract
Page 15 and 16: More work for Leighton at Hong Kong
Page 17 and 18: The Central Reclamation project in
Page 19 and 20: Dr Lars Petzold Eimert Los Robby Dj
Page 21 and 22: page 21
Page 23: CASE STUDY 2: Liberty Baylon has a

Leighton Asia News, October 2004 - Leighton Holdings

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