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Tue August 09 2022

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Keller wins place on Saudi mega project

27 Jun Keller is set to carry out about £50m of piling work as its first task on Saudi Arabia’s Neom mega project.

'The Line' is a 170km-long mega-city
'The Line' is a 170km-long mega-city

It is one a small number of geotechnical contractors to have been selected to undertake work on the project under a framework agreement. The first element of the Neom project is 'The Line', a 170km-long ‘mega-city’ starting in the west at the Gulf of Aqaba, continuing through the Sharma Valley and terminating at Neom International Airport within the upper valley region.

The Line is subdivided into approximately 135 modules, each containing 8 buildings founded on large-diameter bored piles. Keller has signed an umbrella framework agreement in respect of the project, and is mobilising for an anticipated first works order on a portion of Module 40. The work has an expected value to Keller of around £50m and is expected to be completed within the next twelve months.

Further works orders are expected to be awarded later in the year on subsequent modules. “We have a longstanding presence in Saudi Arabia and we are delighted to have been invited to participate in Neom, a world class construction project,” said Keller. “Following the signing of the Framework Agreement Keller is very well positioned to participate in the future geotechnical work, with the potential to generate contract revenues in the hundreds of million pounds in future years.”

The company said that it is trading as anticipated in the first half of the year and that the board's expectations for the full year remain unchanged. It expects 2022 to be a year of growth, with full year performance to have the customary second-half weighting, and to reflect its usual increase in trading momentum as the year progresses. It said that its record order book continues to strengthen in terms of volume and quality and is expected to be around £1.5bn at the half year.

Keller Group CEO Michael Speakman said: “Our delivery in line with our first half expectations and the Group's record and growing £1.5bn orderbook provides confidence for our performance in the second half and delivering on our expectations for the full year. Our involvement in the prestigious Neom project, together with a number of recent infrastructure and LNG contract wins, evidences the diversity and inherent resilience of the group across the macroeconomic cycle. The underlying strength of the Group's performance provides confidence in our longer-term prospects and is reflected in the board's decision to recommence the progressive dividend policy with a 5% increase in the interim dividend for the first half of 2022.”

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