SINGAPORE (Nov 7): Civmec, the provider of heavy engineering and construction services headquartered in Australia, reported 1Q18 earnings fell 38.6% to $3.8 million from $6.2 million a year ago.
Revenue came in 34.1% higher at $140.3 million from $104.6 million as projects ramped up. Projects secured in 1Q18 included steel fabrication works for Perth’s Swan River Pedestrian Bridge, which it will undertake as part of an Alliance, and a contract with Jemena for the Northern Gas Pipeline in Australia’s Northern Territory.
Gross profit was $10.0 million for 1Q18 down from $15.4 million in the comparative period due to lower gross margins. This was due in part to a reallocation of tendering and human resource costs to operational divisions.
In the absence of this reallocation gross profit for 1Q18 would have been $12.1 million.
Administrative expenses for 1Q18 decreased 38.6% to $3.9 million from $6.4 million in 1Q17.
The group’s order book as at October stands at $627 million. Based on current timing of projects commencing the majority of this order book should be realised in FY18.
In its outlook, Civmec says the group remains positive about the outlook and is strategically positioned to capitalise on the $800 billion pipeline of capital spend in Australia over the next 10 years.
Barring unforeseen circumstances, the group expects to be profitable in the current financial year ending June 30, 2018.
Shares in Civmec closed 1 cent lower at 56 cents.
