SINGAPORE (May 14): Civmec, the provider of engineering services, reported third quarter earnings surged more than eightfold to $7.2 million in 3Q18 ended March from 3Q17 on higher contributions from projects in the sectors it operates.
The Australia-headquartered heavy engineering and construction services company said gross profit increased to $13 million in 3Q18 from $7.0 million in 3Q317 as revenue increased to $193.3 million from $74.1 million.
Fully diluted earnings per share for 3Q18 increased to 1.44 cents from 0.16 cent a year ago while net asset value per share improved to 36.08 cents as at March 31 from 34.95 cents as at June 30 2017.
As at March 31, the group’s order book was $832.2 million. This includes a contract announced on April 16 from Luerssen Australia for the SEA1180 Offshore Patrol Vessel (OPV) project, which will see Civmec supplying and processing steel for 12 OPVs.
In addition to fabrication and construction work for 10 of these OPVs, Civmec will undertake the final consolidation of these vessels at its new world-class shipbuilding and maintenance facility at Henderson, Western Australia.
Civmec remains positive about the outlook and is well positioned to capitalise on the significant pipeline of capital spend in Australia over the next 10 years.
The process to dual list by the company on the Australian Securities Exchange (ASX) is nearing completion with the submission of the information memorandum on May 9 to the ASX.
Barring unforeseen circumstances, the group expects to be profitable in the current financial year ending June 30.
Shares in Civmec closed 3 cents higher at 56 cents on Monday.
