Contractor Decmil Group says its strategy of seeking work outside its key markets has propelled it to its sixth consecutive year of record profits.
Decmil today announced a net profit of $64.4 million for the 2013 financial year, up from $39 million in FY2012.
Revenue, however, was down to $528.7 million, from $555.5 million in the previous 12 months.
The company will pay a final dividend of 8 cents per share, fully franked
Decmil chief executive Scott Criddle said the company was delighted to produce a strong result in the current weak resources sector environment.
“The past 12 months have produced a number of challenges for Austrlaian mining, resources and oil and gas sectors,” Mr Criddle said in a statement.
“Decmil’s response has been to work harder, work smarter and above all to focus on our strategy of diversifying risk and earnings, which is now starting to come to fruition.
“As a result we have won major contracts from new clients, we have extended our footprint into new geographic markets and we have started building solid recurring revenues from new divisions in the group.”
One of Decmil's significant contracts outside its traditional scope is a $137 million deal to build an asylum-seeker processing facility on Papua New Guinea's Manus Island.
Decmil said it had committed revenue of $420 million, including recurring earnings from its accommodation and engineering divisions.
Mr Criddle said the group expected further profit growth in FY2014.
“There is no hiding from the fact that market conditions within the mining and oil and gas sectors remain somewhat challenging,” he said.
“However, Decmil Group has taken the necessary steps to diversify and strengthen the business over the past two year.
“Through both acquisitions and our build-own-operate strategy we have reduced our reliance on securing one-off projects from the resources sector.
“All of this combines to put Decmil Group in a strong position to continue our growth in the year ahead and beyond.”
The company’s stock had climbed 16.5 per cent by 11:25AM, trading at $2.39.
