Civmec grows earnings, profit

Listed contractor Civmec has almost doubled its first-half net profit and earnings while declaring its first interim dividend.

Civmec this morning reported a first-half profit of $15 million, up 88 per cent on the same time last year, while its earnings before interest, tax, depreciation, and amortisation (EBITDA) surged 94 per cent to $34.3 million.

Chairman James Fitzgerald attributed the strong result to the company’s growing order book.

Civmec’s recent contract wins include with iron ore majors BHP and Rio Tinto, as well as work on state government and defence projects, which have contributed to an order book of $1.15 billion, as at the end of January.

Mr Fitzgerald said strong profits and cashflow coupled with reduced capital requirements had allowed the group to declare its first interim dividend.

Civmec will pay a 1-cent-per-share dividend to shareholders on March 26.

The company was trading 2.5 per cent higher at 2:45pm AEDT to 61 cents.