Geotechnical firm recently awarded 拢50m package on controversial Neom project
Keller is preparing for work on its first major contract on Neom, a $500bn new city set to be built on the coast of Saudi Arabia.
The ground engineering contractor released its half-year results today, which demonstrated strong growth and highlighted Neom鈥檚 鈥減otential to generate contract revenue in the hundreds of millions of pounds in future years鈥�.
Revenue at the company for the six months to 30 June was up 36% from 拢984m to 拢1.34bn, driven mostly be increased revenue in North America, while pre-tax profit also rose, from 拢39.5m to 拢49.6m.
Keller is one of a small number of geotechnical firms working on The Line, which is Neom鈥檚 first development and is comprised of two horizontal skyscrapers, each 170km long.
The firm was awarded its first works order on the project last month, which was worth roughly 拢50m, and while there has been scepticism from some quarters about the futuristic plans for the new city by the Red Sea, but Michael Speakman, Keller鈥檚 chief executive, said he had no doubts the project would go ahead.
He said: 鈥淲e know from our work on site already that there is a lot going on. They鈥檙e building a batch plant at the moment [and] they鈥檝e already built three very big encampments for people to work there.鈥�
鈥淢ake no mistake, this is happening, it鈥檚 just a question of the pace at which it gets executed.鈥�
Speakman said he expected the project to be delivered more slowly than Saudi Crown Prince Mohammed bin Salman, who this week said he expected 1.5 million people to be living in The Line by 2030.
The proposed city is meant to be car-free and carbon neutral, but critics have accused the Saudi government, which is helping bankroll Neom, of greenwashing, raising concerns about the environmental consequences of building a new city in the desert and about the labour practices in the country.
Speakman said Keller would ensure its supply chain was 鈥済ood and proper鈥� with regards to labour standards and that workers are treated 鈥渁ppropriately鈥�.
He added that it was 鈥渢rite for people to throw bricks at the Saudis鈥� on environmental issues, while building similar residential infrastructure in their own countries.
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Speakman said the firm鈥檚 performance 鈥渃ould have been even better鈥� if not for some north American headwinds, including supply of raw materials.
He said that while the company had been able to pass the price of diesel onto clients, delivery of cement and aggregates in some regions had been a challenge.
Keller also posted a record order of 拢1.6bn at the end of June, up 31% on the prior period.
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