Macmahon returns to the black

Local contractor Macmahon Holdings has returned to the black with a net profit of $1.7 million after a tough year in the mining sector.

Macmahon returned from a $217.9 million net loss in the 2015 financial year to a net profit of $1.7 million for FY16, despite revenue nearly halving to $347.4 million.

Earnings before interest, tax, depreciation and amortisation also fell about 60 per cent, to $39.1 million.

“The year reflected a period of ongoing transformation for Macmahon as it further reduced its cost structures to better suit the current environment,” the Perth-based company said in a statement.

“The company is now better positioned to capitalise on new opportunities that arise as the market continues to show signs of improvement.

“In recent months the mining sector has started to show signs of a rebound.

“This improvement in sentiment is expected to flow through to the mining services sector over the near term.”

Macmahon said it was tendering for a number of surface and underground contracts both in Australia and overseas, with the company expecting revenue to be in the range of $350 million to $370 million for FY17.

“Importantly, more than $320 million is contracted for FY17 reflecting the company’s healthy base load of work for the next five years and beyond,” it said.