25/02/2014 - 13:05

SCEE lifts half-year profit

25/02/2014 - 13:05

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Southern Cross Electrical Engineering has reported a stronger half-year profit result, driven by the successful completion of key contracts.

SCEE lifts half-year profit
SCEE managing director Simon High speaking at the company's new office opening in November last year.

Southern Cross Electrical Engineering has reported a stronger half-year profit result, driven by the successful completion of key contracts.

SCEE lifted its net profit by 45 per cent to $6.2 million in the six months to December 2013.

The company's revenue was 8 per cent lower at $110.7 million, with contract activity slowing towards the end of the period.

SCEE attributed its stronger profit to the completion of contracts at Rio Tinto's Cape Lambert Port B project in the Pilbara and Anglogold Ashanti's Tropicana gold project.

Its plant and equipment investment program also generated savings, leading to a reduction in the requirement for hired equipment.

SCEE managing director Simon High said while competition for available work remained tight, placing pressure on margins, the company was hopeful it could secure more work in sectors such as liquefied natural gas.

"We continue to see a pipeline of opportunities, particularly in the iron ore sector, but we are seeing a move away from the large scale projects that have been prevalent in recent years to smaller expansion and sustainaing capital projects," he said.

"Having secured our first award and demonstrated our capabilities, we are optimistic that LNG can become a key revenue contributor going forward."

The company's order book currently stands at $97.6 million, with a further $52 million of orders in "advanced stages of negotiations".

SCEE shares closed the day's trade 2.4 per cent lower at 82 cents.

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