Electrical and instrumentation contractor Southern Cross Electrical Engineering has shrugged off continuing uncertainty in the mining services sector, saying growth opportunities remain even after lodging its best financial result in its 35-year history.
SCEE today announced a 27 per cent rise in net profit to $17.3 million for the 12 months to June 30, up from $13.7 million in the previous year.
Revenue was up to $278 million, from $220 million in the prior 12 months.
SCEE will pay a final dividend of 2.7 cents per share.
Managing director Simon High said the result was boosted by a series of significant contract wins, including a $100 million deal with Rio Tinto at the Cape Lambert port, and a $40 million deal at AngloGold Ashanti’s Tropicana gold project.
Mr High said all segments of the business were running at historically high levels of activity, with the company’s order book at $91.5 million at June 30, excluding revenue from current framework arrangements.
He did caution, however, that SCEE’s operating environment had changed considerably over FY2013.
“Falling commodity prices have resulted in a number of high-profile resources projects being put on hold or cancelled,” Mr High said in a statement.
“We have also seen clients becoming more commercially focused on existing projects.
“Despite the current uncertainty in the resources sector, we continue to see opportunities for growth over the coming years.”
Mr High singled out the LNG sector as providing huge opportunity, with six major LNG plants having achieved final investment decisions and scheduled for construction over the next three to five years.
He said the company would also focus on increasing the scale of its SCEE services brand over the next three to five years through organic growth and acquisitions.
AT 11:00AM, WST, SCEE shares were down 3 per cent, at 95 cents.
