Civmec has reported a sharp fall in quarterly profit to $141,000 after accounting for cost overruns on projects but has also reported strong growth in its order book.
Civmec has reported a sharp fall in quarterly profit to $141,000 after accounting for cost overruns on projects but has also reported strong growth in its order book.
The group’s profit fell from $1.3 million in the December quarter and $6.1 million in the March quarter last year.
Civmec said it had accounted for existing and forecasted cost overruns while working towards its engineering, producement and construction projects, but did not provide any detail about the additional costs.
Revenue in the quarter to March was $80.1 million, down 40 per cent from the December quarter and 57 per cent from March 2018.
Civmec’s order book has grown from $540 million in December 2018 to stand at $820 million at the end of the March quarter.
In a statement, the group attributed the growth in the third quarter to the pickup of Western Australia’s resource sector and said it was confident of securing further substantial awards in the rest of 2019.
Civmec won a contract from Albermale in February for civil, structural, mechanical and piping works at the lithium hydroxide plant at Kemerton in the south west of WA and will also supply the kilns and cooler shells for the plant on behalf of Metso.
Civmec chief executive Pat Tallon said the two-year Albermale project was ideally suited to the group’s operations, including civil and concrete installation, fabricating, modularisation and site erection of steel and mechanical equipment.
It is also working on the fabrication and modularisation of key components for BHP Group’s South Flank iron ore mine in the Pilbara after being awarded contracts from BHP and ThyssenKrupp Industrial Solutions Australia.
Civmec is developing its facilities at Henderson and Newcastle in New South Wales, to support further contracts.
The 70 metre high shipbuilding facility in Henderson is scheduled to be completed in 2019 and will improve production and assembly and be available for undercover ship maintenance requirements.
The Henderson facility will accommodate the fabrication and construction of 10 of the 12 vessels commissioned under the Royal Australian Navy’s SEA 1180 Patrol Vessel program.
