Keller anticipates major NEOM contract, ahead of ‘record’ first half

A rendering of The Line (Image courtesy of NEOM)

Geotechnical specialist contractor Keller is in advanced discussions about taking on a major new contract at NEOM, Saudi Arabia’s new special economic zone.

In a trading update ahead of its results for the first half of 2023, Keller said it anticipated a second works order for NEOM to be twice the size of its first works order, completed in February 2023, which totalled £40 million (US$51 million).

In 2022, Keller won a major piling contract for ‘The Line’, a 170km-long linear city, being developed within NEOM.

It did not indicate what the second package of works could involve if a deal is signed.

The news came as Keller indicated that it expected to unveil a record first-half performance when it publishes its interim results for the six months to June 2023, scheduled for 1 August 2023.

It said it had seen a “strong recovery” in operating margins at its foundations business in North America. Production volume at its unbonded post-tension specialist in North America decreased but Keller said it had “actively managed” margins at the business.

In Europe, cost inflation stabilised and supply chain issues eased but Keller said the recessionary backdrop had presented challenges, particularly in North East Europe, leading to margin erosion and project delays.