Cape FY to be materially ahead of forecasts

Cape expects 2016 results to be ahead of market forecasts and has announced the award of additional work packages on the Chevron-operated Wheatstone natural gas project, near Onslow, Western Australia.

The group said it 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.

Cape also announced 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.