Boutique corporate finance and strategic advisory firm LCC Asia Pacific today released its latest update on developments in the Australian engineering, contracting and mining services sector. This long running weekly report, commenced in 2011, provides information on developments specific to industries including Engineering, Mining Services, Oil & Gas Services, Oilfield Services and Infrastructure Services. For subscription request to the full report each week contact us at research@lccapac.com

1. ASX200 INDEX
Australia Week Ending
5th June 2020
Date Published
8th June 2020
Edition
361
Australian Engineering, Contractors & METS Providers
Market Performance – Edition 361 – US Jobs Data + Vale COVID 19 Issues
M&A Rumour, Industry News and Private Activity
DAILY PERFORMANCE OF ASX200
No new M & A activity amongst listed companies during the week, although capital
raisings, COVID 19 updates and contract wins continued. Also construction was due
to start last week on the Western Sydney Airport rail line
Cardno announced the resignation of its CFO during the week – he will leave at the
end of September 2020
Monadelphous updated that had been awarded a series of construction and
maintenance contracts in the resources & energy sectors with combined value of
approximately $150 million
Worley announced award of construction & site maintenance agreement with
Syncrude Canada. No dollar value was provided
MacMahon announces three year expansion at the Byerwen coking coal mine in the
Bowen Basin for $700 million with services out to November 2020 plus a 2 year
option. On track to deliver FY20 guidance of $1.3 billion to $1.4 billion and $85
million to $95 million EBIT(A)
MACA updates now expecting Revenue to exceed $800m and EBITDA between
$110m and $114m for FY20
Perenti’s Barminco released Quarterly Results on the SGX in compliance with the
US$350m 6.625% Senior Notes due 2022
McConnell Dowell won a major oil pipeline construction contract in New Zealand
(Bridal Path Road)
In Taiwan OFCO Industrial acquired engineering firm Yung Fu Co for US $5m
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To subscribe to this report contact us at research@lccapac.com Page 1Sources: Thomson Reuters Eikon, LCC Research
Whilst we have enjoyed a long weekend the DOW Jones has continued its run – posting 6 consecutive up days. VALE has had 3 Iron
Ore mines suspended due to COVID 19 issues (representing about 10% of its production output) – pushing iron ore futures over US
$100. Interestingly VALE have maintained production guidance on the weekend. Strong Iron Ore continued to provide support for the
Australian Dollar. On Saturday, China’s Ministry of Culture & Tourism warned citizens not to travel to Australia due to “significant
increase” in racial violence following COVID 19. Finally Chinese oil imports for May were at record levels
Change in basis point
Week YTD 12-months Week YTD 12-months
(Australia) S&P / ASX200 4.2% 6.2% (6.0%) (Australia) 2-year gov bonds 0.30% 0.02 (1.60) (0.76)
(Japan) Topix 3.1% 7.9% 5.7% (Australia) 5-year gov bonds 0.43% 0.03 (1.49) (0.69)
(Singapore) FTSE Strait Times Index 9.6% (10.3%) (12.5%) (Australia) 10-year gov bonds 1.09% 0.20 (1.23) (0.38)
(Hong Kong) Hang Seng 7.9% (4.2%) (8.1%)
(South Korea) Kospi 200 8.3% 10.9% 8.4% Rate Week YTD 12-months
(US) S&P 500 4.9% 27.4% 12.3% AUD to USD 0.6968 4.5% (1.2%) (0.1%)
(US) Dow Jones Industrial 6.8% 16.2% 5.4%
(UK) FTSE 100 6.7% (3.6%) (10.7%)
Percentage change
Index Fixed income Yield