Civmec builds on financial growth

Civmec boss Patrick Tallon says the company's "relentless focus" on cost containment amid high inflation and labour shortages has led to another strong set of financial results. 

The Henderson-based construction and engineering company generated $187.8 million in quarterly revenue, down slightly from $192.9 million from the third quarter of FY22.

But Civmec’s net profit after tax grew 20.2 per cent to $14.6 million, up from $12.1 million in the corresponding period last year.

It produced an earnings before interest, taxes, depreciation, and amortisation of $27.4 million, up 19.4 per cent form $23 million in FY22.

At the end of March, Civmec’s order book came in at $1.2 billion after securing a series of contracts from major players including Fortescue Metals Group and Albemarle Corporation.

In a statement on the ASX, Civmec said the company's focus on maintain a strong order book had enabled them to increase earnings and margins despite a slight decrease in revenue.

“Our continued disciplined approach to contract selection and execution coupled with our relentless focus on cost containment, optimising productivity and working with our clients proactively along the project life cycle in these times of high inflation and tight labour markets has allowed us to generate yet another set of strong results for our shareholders,” Mr Tallon said.

“Instead, we are increasingly regarded by our clients as the go-to contractor to reliably deliver, particular on time-critical services.”

During the quarter, Civmec won three contracts for Albemarle’s Kemerton lithium refinery trains three and four to manufacture 25 carbon steel tanks and eight kilns.

It also won additional fabrication work for Fortescue Metals Group’s Iron Bridge magnetite project in the Pilbara which reached first production on May 1.