Revenue rise lifts Civmec

Henderson-based contractor Civmec lifted profit to $S10.4 million ($A10 million) for the first half of the financial year, up 59 per cent, on the back of a big surge in revenue.

Revenue rose to $S320 million ($A308 million) for the six months to December, up from $S174 million ($A167 million) in the previous corresponding period.

That was driven by much higher contributions from existing contracts, the company said in as release to the Singapore Exchange today.

A further $S574 ($A551 million) million of work is in the business’s order book, while it expects to win more contracts over the year.

One opportunity will be the building off the offshore patrol vessels for the Royal Australian Navy, with both Civmec and Henderson neighbour Austal being selected to take part in that $3 billion contract.

It is not yet clear what part of the build Civmec will undertake, as the contract is still being negotiated, but the government has so far confirmed Civmec will supply steel for the project.

Civmec invested about $80 million in a new shipbuilding facility in Henderson as part of its pitch to win naval work.

Civmec chief executive Patrick Tallon said he was pleased with a strong result for the period.

“Following significant effort to secure a strong order book over the previous year, we are now realising the rewards of this campaign,” he said.

“We are very enthusiastic about the recent government announcement on the (offshore patrol vessel) tender program”