Dual-listed construction and engineering services provider Civmec Limited has reported earnings of A$50.8 million ($48.8 million) for the FY2022 ended June, 46.0% higher than FY2021’s earnings of A$34.8 million. The higher earnings were attributable to the higher revenue and lower finance costs.
Earnings per share (EPS) for the period stood at 10.11 Australian cents, up from the 6.94 Australian cents in the FY2021.
Revenue for the FY2022 was up by 20.0% y-o-y to A$809.3 million, which is a record for the group. The higher revenue was thanks to the timing of the projects, which saw higher revenue within the group’s resources and infrastructure, marine & defence segment and offset by the energy segment.
Gross profit was up by 21.1% y-o-y to A$90.8 million, while gross profit margin (GPM) increased by 0.1 percentage point to 11.6%.
Other income for FY2022 increased by 17.7% to A$2.9 million from A$2.5 million in FY2021 mainly due to the fair value gain on an investment property partially offset by a reduction in insurance recoveries.
Ebitda for the period was up by 28.1% y-o-y to A$94.5 million.
Net profit after tax (NPAT) was 46.5% higher y-o-y at A$50.7 million.
Net profit margin was 1.2 percentage points higher y-o-y to 6.3%.
Finance costs for FY2022 decreased by 24.9% to A$4.9 million from A$6.5 million in FY2021 due to the utilisation of bank debt with lower interest rates following the redemption of senior secured notes in November 2021.
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As at June 30, Civmec’s order book stood at A$1.04 billion, up 3.3% y-o-y.
Cash and cash equivalents as at June 30 stood at A$40.8 million.
For the period, Civmec has declared a final dividend of 2.0 Australian cents, 50% higher than the previous year’s final dividend of 1.0 Australian cent.
This year’s final dividend has also brought the year’s total dividend to 3.0 Australian cents. Subject to approval by shareholders, the final dividend will be payable on Dec 19.
“Civmec continues to consistently grow revenue and profits with good performance across all operating sectors, delivering record results for the Group’s tenth year since listing on the Singapore Exchange (SGX),” says chairman James Fitzgerald.
“This places the group in a strong financial position as we enter FY2023, especially when combined with an order book in excess of A$1 billion,” he adds.
Commenting on Civmec’s order book of A$1.04 billion, CEO Patrick Tallon says: “Starting the new year on the back of record revenues and profits with a strong order book across all disciplines we operate in will allow us to maintain our focus on securing contracts that suit our capabilities best with timing that matches our capacity to deliver for our clients.”
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“I am particularly pleased with the increasing amount of term contracts we are securing and expect that our investment in facilities in both the Port Hedland and Gladstone regions will over time accelerate this momentum,” he adds.
“Tendering activity remains strong across all sectors that we operate in, and we are focused on securing projects that will allow us to grow our workforce at a sustainable rate. We remain positive about the pipeline and the opportunities to continually replenish our order book. We are also increasingly focused on growing the proportion of revenue earned on long term contracts,” he continues.
Shares in Civmec closed flat at 64.5 cents on Aug 29.
