Macmahon has reported a strong half-yearly result, but MACA and GR Engineering have seen their profit plunge compared to the prior corresponding period.
Macmahon Holdings has reported a strong half-yearly result, but profits at MACA and GR Engineering Services have plunged compared with the prior corresponding period.
Macmahon delivered revenue of $542.2 million for the period, a rise of 101 per cent from the six months to the end of 2017.
It had underlying earnings before interest and tax of $39.9 million, a 311 per cent rise on its result from the year prior.
The company said it was on track to achieve its full-year underlying earnings before interest and taxation of between $70 million and $80 million.
Chief executive Michael Finnegan said new contract wins at mining projects during the period including at the Batu Hijau copper/gold project in Indonesia, the Byerwen coal project in Queensland, and the Mount Morgans gold project in Western Australia, had supported the substantial revenue growth.
“We are very pleased to have delivered another strong result putting us on track to achieve our FY19 guidance,” he said.
“With a robust balance sheet and substantial order book of $4.8 billion, we are well positioned to pursue our extensive tender pipeline, assess strategic growth opportunities and consider potential distributions to shareholders.”
Maca reported revenue of $324 million for the half year, an increase of 14 per cent compared with the previous corresponding period, but its profit was down 32.5 per cent to $8.1 million.
It declared an interim dividend of 2 cents, down by 1 cent from its previous interim dividend.
However, Maca increased its revenue guidance for the full year from $620 million to $640 million.
In a statement, the company said its second half financial performance was expected to be stronger as it reaped the returns of significant capital investment to improve the efficiency and profitability of its mining services division.
GR Engineering recorded revenue of $91.3 million, while its profit before tax fell 62 per cent to $4.4 million.
It declared an interim dividend of 4 cents per share, a decrease of 2 cents compared to its previous interim dividend.
GR Engineering managing director Geoff Jones said project execution activity was lower in the first half of this financial year, against levels experienced throughout the 2018 financial year.
But he said there were some positives from the results.
“Upstream Production Solutions performed solidly, contributing to approximately half of the group’s total HY19 revenue,” Mr Jones said.
“Positive outcomes were achieved in securing a total of approximately $42 million in new work at Carosue Dam and Fosterville, reflecting GR Engineering’s strong capability in the design and construction of paste backfill plants.”
Shares in Macmahon were up 2.7 per cent to trade at 27 cents each at 1.15pm AEDT.
Shares in Maca were up 1 per cent to trade at $1 each at 1.10pm AEDT.
Shares in GR Engineering were up 0.4 per cent to trade at $1.17 each at 12.30pm AEDT.
