Civmec quarterly profit drops 75%

Civmec has reported a profit of $1.27 million for the second quarter of the 2019 financial year, while also announcing a new contract at Albemarle Corporation's Kemerton lithium project.

The quarterly profit was down 75.3 per cent compared to the previous corresponding period.

The company’s profit before tax for the quarter was just $455,000, but it received an income tax credit of $810,000.

The Henderson-based contractor recorded  sales revenue of $135 million for the quarter, down 21 per cent on the same period a year prior.

In a statement, the company said the reduction in revenue was due to projects completing in this period.

Its profit for the six months to December was $6.76 million, a fall of 8.4 per cent compared with the previous corresponding period.

In September, the company announced it had won a maintenance services contract with iron ore miner Roy Hill Holdings.

In October, Civmec erected the first steel for its new $80 million assembly hall in Henderson, as part of its joint venture with German shipbuilder Lürssen for the Royal Australian Navy’s $3 billion offshore patrol vessel program.

Civmec did not disclose any specific details about its shipbuilding program in its statements today.

Late on Friday, the company announced it has been awarded a substantial contract for the Kemerton lithium project.

Civmec did not disclose the conntract value but said the work will run for two years, involve up to 300 people and lift its order book to $758 million.

The scope of work includes structural, mechanical and piping for three lithium hydroxide production trains.

The company's Henderson facility will be used to fabricate and pre-assemble selected components for on-site erection.

Shares in Civmec were down 4.17 per cent to trade at 46 cents each at 1.40pm AEDT.