For the second time this week Leighton Holdings has hit the headlines, this time with news of a restructure of its international operations.
It has been a busy week for Leighton.
On Monday the company released its third quarter report, confirming a loss, but forecasting a return to profits in the 2012 financial year.
As well, the new CEO of the company’s biggest shareholder, Hochtief was in the country for his first Leighton board meeting, along with a senior executive of Hochtief’s new controlling shareholder, the ACS construction group of Spain.
In the statement to the ASX yesterday, Leighton’s CEO, Mr David Stewart said the new reporting structure (see graphic below) was aimed "at simplifying the reporting structure for the Group’s intentional operations."
Mr Stewart said that these arrangements streamline the reporting structure of the overseas operations into two divisions under capable and experienced executives.
"Our businesses in Asia (Leighton Asia Limited), in India (Leighton Welspun India), and Offshore (Leighton Offshore Pte Limited) will now all report to Hamish Tyrwhitt, who is appointed Managing Director Leighton Asia, India and Offshore.
"Hamish will also continue to fulfil the role of Managing Director Leighton Asia Limited," said Mr Stewart.
"We do not envisage that there will be extensive integration between the three businesses.
"Leighton Welspun India is jointly owned with Welspun and will therefore continue to operate as a stand-alone basis.
"Leighton Offshore will also operate on a stand-alone basis given the very clearly defined market in which it operates. Leighton’s offshore oil and gas business is focused on the nearshore and shallow water segments and is recognised as an industry leader in single point mooring system installations," said Mr Stewart.
"Our businesses in Africa (Leighton Africa) and in the Middle East and North Africa (Habtoor Leighton Group (HLG)) will report in to Laurie Voyer, who is appointed Managing Director Middle East and Africa. Laurie will also continue to fulfil (sic) the role of CEO & Managing Director of HLG," he said.
"Leighton Africa was recently awarded its first mining project in Africa, a 66 month US$586 million mining service contract (Leighton’s share is 60%) at the Debswana diamond mine in Jwaneng, Botswana. We see the Southern Africa region, which includes Botswana, Zambia, Namibia, Tanzania and Mozambique, as offering a significant range of mining opportunities.
"We see Asia and the other offshore markets growing significantly over the foreseeable future offering the Group a range of construction, mining and services opportunities," said Mr Stewart.
Leighton shares fell 14c to $23.40 yesterday.
The shares have risen from their 52 week low of $22.51 on May 10.
The shares are 90c above the $22.50 issue price in the company’s recent fund raising.
