Civmec has boosted its first-half net profits by 25 per cent and has recorded a positive cash position for the first time since 2016, according to its latest financial results.
Henderson-based Civmec has boosted its first-half net profits by 25 per cent and has recorded a positive cash position for the first time since 2016, according to its latest financial results.
The ASX-listed company reported a first-half profit of $28.3 million, up from $22.6 million during the same period in 2022.
Its earnings before interest, tax, depreciation, and amortisation (EBITDA) grew 23 per cent to $51.3 million, up from $42.2 million in the previous year.
December 2022 marked the first time since June 2016 that the company recorded a positive net cash position of $62.8 million cash and equivalents against $50 million in borrowings.
“This is notable as it comes just three years after the completion of significant investments in new facilities at the group’s Henderson site and on top of substantially higher dividend payments,” the company said in today’s statement.
Civmec delivered interim dividends of two cents per share, up from one cent per share in the first half of the 2022 financial year.
“It is pleasing to deliver another excellent result for our shareholders with continued strong profit margins coupled with a growing order book and excellent cashflows,” Chairman James Fitzgerald said.
“This is the seventh consecutive half that we have reported increased profits.
“These results have allowed the board to declare a higher interim dividend of 2 Australian cents per share, compared to the 1 cent interim dividend paid last year”.
During the financial period, Civmec completed work for Rio Tinto and was contracted for civil and fabrication work for the Iron Bridge Magnetite project south of Port Hedland.
Civmec is set to continue work on Covalent Lithium’s Kwinana-based lithium hydroxide refinery, design and development approval works for the Causeway Bridge project and supply of subsea structures for the Scarborough gas project.
Chief executive Patrick Tallon said Civmec’s order book of $1.12 million solidified its growth.
“Our continued order book growth and good visibility of upcoming projects from clients, coupled with our increasing client base for maintenance work, puts us in a strong position to continue delivering sustainable growth for our shareholders,” he said.
On the market, Civmec shares were up 3.82 per cent to trade at 68 cents at 1.02PM AEDT.
