Graña y Montero Announced That Backlog is Close to US$ 3,600 Million
March 31 2017 - 8:15PM
Business Wire
Graña y Montero S.A.A. (NYSE:GRAM) (BVL:GRAMONC1) (“the Company”
or “Graña y Montero”) a leading Engineering and Construction
company, announced today that in the General Shareholder Meeting,
the appointment of 7 new members of the Board of Directors was
approved, and now is comprised by a total of 9 members. In the
afternoon, the new Board will hold its first session, in which it
will appoint the Chairman and Vice-Chairman as well as distribute
the responsibilities of the directors in the different operational
committees of the Group.
During the meeting led by Luis Diaz Olivero, Chief Executive
Officer of the Group, the portfolio of projects (backlog) was
presented in detail. Up to February 2017, the projects amount to
approximately US$ 3.6 billion, which demonstrates the Group's
financial strength. He also indicated that 11% of this portfolio
belongs to projects contracted with the public sector and the rest
are private. Among the main projects are the expansion of
Toquepala, the construction of Linea Amarilla, the construction and
operation of the Shahuindo mine, the development and construction
of La Arena Project, the construction of the Aloft Hotel, among
others.
Diaz Olivero commented that, with respect to the indebtedness
generated by the cancellation of the Peruvian Southern Gas Pipeline
(GSP) contract, an agreement was reached with CHUBB Perú (Insurance
and Reinsurance Company) to establish a 12-month payment term,
which will have positive effect. He also added that, with respect
to credit lines with the main banks with which the Group is
related, they are close to reaching an agreement of a committed
syndicated line that will ensure the working capital and the
necessary guarantees to be able to execute its portfolio of
projects, as well as being able to continue contracting in the
future.
In addition to the review of the soundness of the Group's
business, the shareholders learned about the initiatives taken to
strengthen the corporate governance and compliance systems of Graña
y Montero. The internal investigation commissioned in January to a
prestigious international firm was mentioned, indicating that it
will serve as a basis for decisions the company will take regarding
legal actions.
Within this topic, the progress made in strengthening the
Foreign Corrupt Practices Act (FCPA) was explained. In the same
line, the creation of the Risk, Compliance and Sustainability
Committee was mentioned indicating that it was a decision made by
the outgoing board. Moreover, the appointment of the Risk and
Compliance Manager was also discussed, whose selection process is
already under way.
The Group confirmed that currently none of its companies has any
impediment to operate in the public or private sector, either in
Peru or in any other country. Regarding the existence of legal
actions against the company, Luis Diaz Olivero confirmed that only
two civil lawsuits have been filed in the United States, in both
cases corresponding to a single person, and to date we have only
been notified of one of the lawsuits.
In his message in the Shareholder Meeting, Diaz Olivero stated:
"We are convinced that the new board elected today will continue
this commitment to good corporate governance and compliance. From
the management of the business we will propose and implement
additional measures to avoid situations in the future such as in
the recent past. For this, for example, we are proposing new
conditions when it comes to partnering with third parties for the
development of projects."
The Group's CEO reiterated that the different initiatives being
implemented will serve to strengthen and expand the trust of
suppliers and customers, as well as of the entire Peruvian society.
Luis Diaz Olivero included among his priorities, the renewal of the
“pride of belonging” that has characterized to date the more than
28,000 employees of Graña and Montero.
About Graña y Montero S.A.A.
Graña y Montero is the largest and most important Engineering
and Infrastructure Company in Peru. It has 26 companies in 4
Business Areas and operates in 5 countries in Latin America. It is
the only South American construction company listed in the Lima
Stock Exchange and in the NYSE. It has 83 years of operations, due
to its corporate values, which have always guided the behavior of
its employees. It has been an example in the region for its good
practices in corporate governance and has been continuously
considered as one of the most admired and renowned firms of the
country.
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version on businesswire.com: http://www.businesswire.com/news/home/20170331005878/en/
Graña y Montero S.A.A.Belén Masson, 511-213-6565 Ext.
6453Investor Relations
Assistantbelen.masson@gym.com.perelacion.inversionistas@gym.com.pehttp://investorrelations.granaymontero.com.pe/
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