Adolfo Valderas has taken over as the new chief executive of CIMIC Group, which is on track to deliver a full-year net profit of at least $520 million.
The construction contracting company’s deputy CEO immediately takes over the CEO position from Marcelino Fernandez Verdes, who will continue in his other role as executive chairman.
“CIMIC Group’s solid financial position, our robust pipeline and the expertise of our people in delivering complex construction, mining, mineral and concessions projects provides us with a strong future of which I am proud to be a part,” Mr Valderas said in a statement on Wednesday.
The company also announced its third quarter profit had jumped 11.4 per cent to $148.5 million in the three months to September 30.
Revenue had risen 17.2 per cent to $2.7 billion, compared to the same time last year.
CIMIC announced a number of projects in the quarter that were expected to generate $1.14 billion in future revenue, including a tunnel in Hong Kong, an underground mine decline in Mongolia and coal handling and preparation plant works in Queensland.
Also, its subsidiary Thiess had established a joint venture to provide mining services to an oil sands project that could generate revenue of up to $430 million.
Mr Verdes confirmed CIMIC’s full-year profit guidance of between $520 million and $580 million, subject to market conditions.
“Our strategy of exporting our skills is starting to pay off, with project wins in mining in North America and construction in Asia providing the most recent examples,” he said in a statement.
“Diversification, combined with our disciplined approach to risk management, is key to our focus on delivering sustained returns, enhancing our resilience and building our competitive position.”
CIMIC’S SOLID RESULTS:
- Third quarter net profit up 11.4pct to $148.5m
- Revenue up 17.2pct to $2.7b
- Full-year profit guidance of $520m to $580m