Balfour Beatty makes progress on several major projects, retains guidance

(Sharecast News) - Balfour Beatty has reiterated its guidance for profit growth in 2024 after an in-line performance from the infrastructure group since the start of the year.

Ahead of Thursday's annual general meeting, the company reported that it has "made progress on several major projects which align strategically to the group's growth markets, and for which material orders are expected to follow".

Notably, the power transmission and distribution business has started early contractor involvement works on nine electricity transmission projects across the north of Scotland for Scottish and Southern Electricity Networks, which are expected to convert to full awards in the future.

Balfour Beatty has also received a letter of intent to progress with the next phase of BP and Equinor's Net Zero Teeside Power project, with the final contract awards subject to the receipt of regulatory clearances and final investment decisions later this year.

Meanwhile, the company was also selected as a construction partner for Rolls-Royce's expansion work in Derby as part of the AUKUS submarine agreement.

"The group's trading over the period has been in line with expectations and the board continues to expect an increase in profit from operations from its earnings-based businesses and an increase in group earnings in 2024," the company said.