SINGAPORE (Aug 22): Civmec, the integrated construction and engineering services provider, announced earnings of $8.4 million for the full year ended June, down by half from the $17.4 million reported in FY16 on lower revenue.
Revenue for the full year declined 12.8% to $346 million from $396.7 million for the previous year, due to prior delays which took place earlier in the year in terms of securing and commencing new projects.
Gross profit for the period fell 14.8% to $37.1 million from $43.5 million in FY16, even as gross margin remained steady at 10.7%, down just 0.2 percentage points from that of the previous year.
Administrative expenses grew 14.1% to $26.9 million compared to $23.6 million in the previous year, which the group says is a reflection of its commitment to future growth and positions the business to execute large engineering procurement construction (EPC) projects.
Civmec also incurred a loss in share of joint venture of $0.3 million for the year compared to a profit of $3.9 million registered in FY16.
As of Aug, Civmec’s order book stood at $610 million compared with $155 million at the end of Dec.
The group attributes this significant increase to strong tendering activity and significant opportunities resultant of an increase in investment activity within the metals and minerals sectors, including the gold and lithium market, combined with the “well-documented infrastructure boom” on the Australian East coast.
“I am pleased that our hard work for the year has been fruitful and provided a firm foundation for the new financial year. We have remained profitable during difficult market conditions and continued to invest significant resources in establishing a solid platform for the coming year,” says CEO Patrick Tallon.
A recommended cash dividend of 0.7 cent per share has been maintained, to be paid out on Dec 14 following shareholder approval.
Shares in Civmec closed flat at 60 cents on Tuesday.
