Decmil reduces net loss

Civil engineering and construction group Decmil reduced its net loss after tax to $1.8 million during the first half of the 2024 financial year, down from $2.5 million during the prior corresponding period. 

Additionally, the company's earnings before interest, tax, depreciation and amortisation profit also decreased, from $3.3 million to $2.6 million. 

"The decline, while impacted by the revenue reduction, was largely attributable to a $6.5 million loss on a single project, which was contracted using a historical risk allocation profile, which is no longer accepted by Decmil," the company said.

"As Decmil has previously noted to investors, the company has changed its tendering process and has adopted selective tendering on larger projects with more equitable risk allocation and better commercial terms."

Decmil's revenue also declined, from $255 million to $215 million, during the first half of FY24. The company said this was primarily the result of a delay between completed contracted work in 2023 and start of work within newly acquired deals in H1, FY24.

Rod Heale, the Osborne Park-based company's chief executive officer, said H2, FY24 was seen as an important period for Decmil.

"With favourable market conditions across our core sectors and a strong cash balance, Decmil is positioned to efficiently deliver on our orderbook and target further contract awards in the remainder of FY24," he said.

“The second half of FY24, has been viewed as the principal driver of cash generation. Our tendering pipeline is strong, discussions are continuing with several potential strategic joint venture partners, and our outlook remains positive.

“Our result for H1, FY24, was impacted by the conclusion of a single loss-making project. However, this was an isolated project contracted and operated during COVID. All other ongoing projects are proceeding satisfactorily.

"In H2,FY24, we are focused on outstanding project delivery.”

Decmil told the market it planned to maintain its FY24 financial guidance of between $440 million and 480 million, on the back of large project-filled portfolio.

On January 25, a Supreme Court writ revealed Decmil was suing the Town of Port Hedland for $5.2 million allegedly owed from a contract signed in 2022.