Fletchers to cream it from quake
The Canterbury earthquake repairs are forecast to deliver Fletcher Building $87m in earnings
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The Fletcher building share price ticked up slightly on news today that it will earn around $87 million from project management fees involving the Canterbury earthquake rebuild.
The latest estimates are considerably rosier than the last update before the June 13 earthquake when Fletcher Building estimated the repair job would cost about $1.8 billion. The new estimates is that it will cost between $2 billion to $3 billion. A $2.5 billion spend would deliver the $87 million in earnings to Fletchers.
The infrastructure alliance being set up that will benefit from the rebuild includes Fletcher Construction, CityCare, MacDow, Fulton Hogan and Downer, with each having a 20% share.
The work includes more than 200km of roads to rebuild, 800km of pipes, manholes and pumping stations, bridges, retaining walls, river banks, curbs, footpaths and berms, traffic islands, traffic lights, barriers and lightstands, parks, reserves and outdoor amenities.
Lyttelton Port alone may require $300 million of repairs.
The cost of materials would make up 35% to 50% of the amount to be spent
Fletchers has set up 18 neighbourhood hubs, accredited 765 firms involving 5900 contractors.
Work so far has involved 20,500 emergency repairs, 6861 heat pump installations, and 2452 burners. Nearly 10,000 repairs are in progress.
FBU share price $8.24
Chris Hutching
Fri, 29 Jul 2011
Fri, 29 Jul 2011
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Fletchers to cream it from quake
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