Aveng set to repay advance

Queensland Curtis liquefied natural gas pipeline project in Australia asks Aveng to repay the remaining A$112.5m advance payment made to the construction group.

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Johannesburg - The Queensland Curtis liquefied natural gas pipeline project (QCLNG) in Australia has requested that Aveng repay the remaining A$112.5 million (R1.07 billion) advance payment made to the JSE-listed construction and engineering group.

Aveng said yesterday that this repayment was planned and had been included in the group’s liquidity analysis performed earlier this year.

The group stressed that it had sufficient cash and facilities at its disposal following the completion of the third and final step in its strategy to improve its balance sheet and liquidity position through the conclusion of the sale of various properties, combined with current levels of cash generation.

Aveng said it intended to settle this liability on or about October 28 and, once settled, would have removed the cash flow risk on the QCLNG project. The group in July last year paid back A$30m of the advance payment. It added that it would continue to vigorously pursue its legal claims through the arbitration process.

Aveng shares on the JSE yesterday fell by 1.32 percent to R3.75.

BUSINESS REPORT