17/04/2018 - 14:23

Cimic starts with profit growth

17/04/2018 - 14:23

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Engineering giant CIMIC has reaffirmed its full-year profit guidance after lifting first-quarter profit 7 per cent to $172 million.

Cimic starts with profit growth
UGL was recently awarded a $250 million contract for work on the Royal Australian Navy’s ANZAC class frigates. Photo: RAN

Engineering giant CIMIC has reaffirmed its full-year profit guidance after lifting first-quarter profit 7 per cent to $172 million.

The company says it expects a net profit of between $720 million and $780 million in 2018, after revenue rose 7 per cent in the three months to March.

Cimic owns CPB Contractors, UGL and Pacific Partnerships, which all operate in Western Australia.

UGL was recently awarded a $250 million contract for maintenance work on the Royal Australian Navy’s ANZAC class frigates in Henderson.

Cimic said it had $35 billion worth of work in hand, in addition to nearly $100 billion worth of tenders to bid on during the rest of the year.

“Cimic’s positive momentum continued in the first quarter of 2018, highlighting the strength of our global business,” executive chairman Marcelino Fernández Verdes said.  

“We have increased revenue and cash-backed profit, and maintain a positive outlook.

“Our balance sheet remains strong, and we continue to consider ways to use our capital that will create long-term value in the best interests of our shareholders.

“This includes taking advantage of growth opportunities, both organic and strategic, that leverage or expand our existing competencies, including investing in public private partnerships.”

Shares in Cimic finished up 0.5 per cent at $43.96 each.

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