Fletcher shares up on update, rebuild work

Fletcher Building shares were buoyed yesterday by an update on its divisions, in particular in relation to earthquake rebuilding work in Canterbury.

In a market update of Fletcher's construction group, one of several divisional updates released to the markets yesterday, it outlined its 20% share in Canterbury rebuilding work, which it shares with four other companies.

Fletcher's update comes at a time when the Earthquake Commission, insurance companies and the Government are coming under increasing fire from householders still awaiting decisions on their claims - more than two years after the major quakes.

Fletcher's total rebuilding programme is estimated to cost $2.5 billion through to 2017, $500 million of work having been completed so far. A total of $1.16 billion has been paid to contractors involved in the rebuilding so far. The Government has estimated the entire rebuilding costs at $40 billion.

Fletcher shares were up about 1.5% at $8.42 after the update.

About 47,400 emergency repairs had been completed, while 37,000, or 45%, of full house repairs had been completed.

Eight projects on Fletcher's order books were outlined, valued at almost $900 million to Fletcher, while 12 work prospects worth a total of $4.4 billion were outlined.

The prospects included the Auckland City rail loop, valued at $900 million, the Christchurch justice precinct and separate convention centre ($300 million each), the SkyCity conference centre ($310 million), Christchurch Hospital ($650 million) and Transmission Gully ($900 million, in partnership).

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