MACA to pay dividend despite FY20 loss

Mining and industrial services provider MACA has disclosed a $17.4 million loss for the 2020 financial year after recognising one-off impairments and foreign exchange costs.

The Welshpool-based contractor last week flagged $51 million in write-downs related to the carrying value of receivables from Carabella Resources' Bluff coal project in Queensland, which MACA said was due to a declining coal market.

MACA also recognised $10.6 million in forex costs following the closure of its Brazilian operations in January.

The impairments adversely affected its full-year net profit, which would have been up by 30 per cent on FY19 to $29.1 million.

Underlying earnings were up 70 per cent to record $120.4 million for FY20.

MACA said the result was underpinned by strong performance within its mining services and civil construction divisions.

The company had received significant Western Australian contracts in FY20 with the likes of First Quantum Mining, Ramelius Resources, and Atlas Iron, amounting to $881 million and contributing to a current order book of $2.3 billion.

MACA also secured civil construction work with Main Roads WA, VicRoads and Fortescue.

The contractor will proceed with a final dividend of 2.5 cents per share, which brings its total payout for the full year to 5 cents.

MACA ended the year with a cash balance of $114.7 million, up by 93 per cent on FY19.

Its shares were up by 9.7 per cent at 3:19pm AEST to trade at $1.02.