AEG 201705170040A

Trading Statement

AVENG LIMITED

(Incorporated in the Republic of South Africa)

(Registration number: 1944/018119/06)

ISIN: ZAE000111829 -

SHARE CODE: AEG

('Aveng', 'the Company' or 'the Group')

TRADING STATEMENT

In terms of paragraph 3.4 (b) of the JSE Limited Listings Requirements, a listed company is required

to publish a trading statement as soon as a reasonable degree of certainty exists that the financial

results for the upcoming reporting period will differ by more than 20% from those of the previous

corresponding period.

The Group expects basic earnings per share ('EPS') and headline earnings per share ('HEPS') for

the year ended 30 June 2017 to be substantially more than 20% lower than the basic EPS loss of

(25.4) cents and basic HEPS loss of (75.2) cents reported for the previous comparative period.

This follows continued weak market conditions for the South African businesses, operational

underperformance and accelerated claims settlements at McConnell Dowell, an increased net interest

expense as well as the impact of previously reported settlements and the agreement concluded with

the South African government.

Shareholders are advised that a further trading statement will be released as soon as there is a

reasonable degree of certainty as to the likely range by which the Group's EPS and HEPS are

expected to decrease.

QCLNG update

As previously announced, the arbitration hearings have been completed. The finding of the Tribunal is

awaited and Aveng expects that an award is likely to be reported within the current financial year's

reporting cycle.

Other claims

Aveng continuously reassesses the position recognised on all its recorded uncertified revenue. The

Group has noted increasingly difficult, litigious and costly processes in bringing long outstanding

claims to commercial conclusion. Despite the unchanged view of the merits of its existing claims,

management is in the process of evaluating previously recognised uncertified revenue considering the

abovementioned conditions. This may result in the derecognition of certain previously recorded

uncertified revenue. Such an adjustment may lead to a further reduction in earnings beyond currently

anticipated results. The Group will continue to robustly pursue its commercial entitlements in relation

to these claims.

Shareholders are therefore advised to continue to exercise caution when dealing in their Aveng

securities until a further announcement is made.

The financial information contained in this trading statement has not been reviewed nor reported on

by Aveng's independent external auditors.

Forward-looking statements

This announcement includes forward-looking statements that reflect the current views and

expectations of the Board with respect to future events and financial and operational performance. All

statements, other than statements of historical fact are, or may be deemed to be, forward-looking

statements, including, without limitation, those concerning the Group's strategy; the economic outlook

for the industry; and the Group's liquidity and capital resources and expenditure.

These forward-looking statements speak only as of the date of this announcement and are not based

on historical facts, but rather reflect the Group's current expectations concerning future results and

events. The Group undertakes no obligation to update publicly or release any revisions to these

forward looking statements to reflect events or circumstances after the date of this announcement.

JSE Sponsor

UBS South Africa Proprietary Limited

17 May 2017

Jet Park

Michael Canterbury

Group Executive: Strategy & Investor Relations

Tel: 011 779 2979

Email: michael.canterbury@avenggroup.com

Date: 17/05/2017 03:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').

The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of

the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,

indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,

information disseminated through SENS.

Aveng Ltd. published this content on 17 May 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 17 May 2017 13:33:18 UTC.

Original documenthttp://www.aveng.co.za/news-media/sens/aveng-limited-trading-statement-0

Public permalinkhttp://www.publicnow.com/view/0EBBFB79902335679778AF63A32E627FEF696503