Civmec Q1 earnings up 7.3% to A$15.2 million
Ry-Anne Lim
HEAVY-ENGINEERING company Civmec posted on Monday (Oct 30) a 7.3 per cent increase in its net profit to A$15.2 million (S$13.2 million) for its first quarter ended Sep 30, from A$14.2 million a year ago.
Revenue rose 7.3 per cent to A$245.1 million in Q1, from A$228.3 million in the year-ago period.
Earnings per share stood at 3.01 Australian cents, up 6.7 per cent year on year from 2.82 cents.
In a business update, the company noted that maintenance and capital works recorded continued growth in the first quarter of the year, with several new agreements and contract extensions awarded. This included a three-year contract with an east coast-based client for maintenance works on their metallurgical coal assets, as well as a two-year extension to the contract of an existing client for maintenance, major overhaul and repair services.
Tendering activity remained strong across all sectors, with the group focused on “securing projects that will allow for sustainable growth”, it added. The group’s order book also remained healthy at over A$1.1 billion, an increase of 17.9 per cent year on year, it said.
“As recently announced, the company has also commenced the process of gaining regulatory approvals to allow the group to redomicile to Australia,” said Civmec chairman James Fitzgerald.
“It is anticipated that this will increase Civmec’s opportunity pipeline for contracts with governments and other Australian entities, where local content policies, or strong intentions to utilise local manufacturing, exist.”
Shares of Civmec closed flat at S$0.76 on Monday, before the announcement.
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