Civmec profit, revenue up

Construction and engineering provider Civmec Limited increased its revenue by 17.5 per cent during the first half of the 2024 financial year. 

The Henderson-based company generated $492.3 million up until December 31 2023, up from $418.9 million during the previous corresponding period.

Additionally, Civmec posted a net profit after tax of $31.9 million, up from $28.3 million, while its net cash soared by 549.2 per cent to $83.1 million. 

The company has also issued an interim dividend of 2.5 cents per share, up 0.5 of a cent from H1, FY23. 

Civmec chief executive officer Patrick Tallon said putting customers first had paid off.

“The positive outcomes for both our half-year performance and consistent shareholder returns demonstrate the power of our diversified revenue strategy focused on delivering a best of class service offering to our clients whilst maintaining appropriate earning margins for shareholders," he said.

"This strategy leverages an increased focus on maintenance and capital works, along with dedicated investments in our people and building enduring client relationships."

Chairman James Fitzgerald said the first-half result was another favourable outcome for Civmec's shareholders, who hadbenefited from the company's no-nonsense cost containment approach. 

"Since June 2018, we have returned almost $75 million to shareholders through dividends," he said.

"During the same period, we have also improved the cash position of the group from a net borrowing position of $84.3 million, to a net cash position of $83.1 million, and increased net assets by $266.8 million. We remain firmly committed to delivering sustainable growth. This commitment is reflected in our continued profitability, excellent cash conversion, and robust order book exceeding $1 billion.”

Civmec also provided an update about its plans to redomicile from Singapore to Australia, which were initially announced in October last year.

"The company is currently working with relevant regulatory bodies in Australia and Singapore to finalise the scheme documents and gain the relevant regulatory approvals before submitting the proposal to a shareholder vote," Civmec said. 

On January 17 2024, US specialist chemical provider Albemarle announced it would scale back plans to expand its Kemerton lithium refinery in Western Australia's South West, for which Civmec was awarded three contracts.

Albemarle said it would go ahead with construction of a third production train, however, would likely defer constructing a fourth. Civmec was contracted to carry out a variety of tasks, including the manufacturing of kilns and fabrication of 25 production tanks. 

Civmec last traded at 90.5 cents per share, down 3 per cent, as of 11.06am AWST.