24/02/2021 - 14:30

Valmec confirms solid first half

24/02/2021 - 14:30

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Energy and infrastructure services contractor Valmec has confirmed a 13 per cent annual rise in earnings, attributing the growth to strong performance across the water and resources sectors.

Valmec confirms solid first half
Valmec has confirmed a 13 per cent annual rise in earnings to record $6.1 million at HY21.

Energy and infrastructure services contractor Valmec has confirmed a 13 per cent annual rise in earnings, attributing the growth to strong performance across the water and resources sectors.

Its earnings before interest, tax, depreciation and amortisation (EBITDA) stood at $6.1 million at December 2020, up from $5.4 million on the same time last year.

Valmec expects its second-half earnings to be higher on the back of a $215 million order book, which has more than doubled in the last 12 months.

That includes a $100 million, five-year asset services contract with Origin Energy for works in Queensland.

Meanwhile, Valmec’s revenue dipped 13 per cent to record $61.1 million at HY21, as flagged by the company at the start of the year. However, its revenue has lifted 45 per cent in the past six months.

Managing director Steve Dropulich said Valmec finished the first half with significant momentum amid signs of recovering domestic markets.

“Moving forward, the company is in a strong position to deliver record revenues for the full year,” he said.

“We expect demand across the construction and asset services divisions to significantly grow, whilst we leverage our growing national profile to build on the strong growth platform set over the past six months.”

Valmec ended the first half with a cash balance of $8 million and total assets of $69 million, up 7 per cent.

The business, which identified a $1.1 billion pipeline of construction and services opportunities, said it would focus on expanding its presence in the growing hydrogen sector.

Shares in the company closed up 5 per cent to trade at 32 cents.

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