Construction and contract mining firm CIMIC has confirmed its profit guidance for its full fiscal year after lifting its first half profit by 3.1 per cent.
CIMIC, formerly known as Leighton Holdings booked a net profit for the six months to June 30 of $265.2 million.
The company also confirmed its guidance for a full-year net profit in the range of $520 million to $580 million, subject to market conditions.
CIMIC said its first half net profit was solid, margins had further improved, and work in hand had steadily improved, rising two per cent to $29.6 billion.
But first half revenue fell 31 per cent to $4.9 billion, down from $7.2 billion a year earlier as the number of major road and rail projects in Australia slowed..
CIMIC chief executive Marcelino Fernandez Verdez said, however, that in the second quarter revenue returned to growth and the emerging positive trend was expected to continue.
“With a sound balance sheet and increased net cash we are in a position to pursue growth organically as well as through PPPs (public-private partnerships) and other investment opportunities,” Mr Fernandez Verdez said.
CIMIC said new work secured included:
- Ccoal mining in Indonesia (to generate revenue of $180 million);
- Level crossing removals in Victoria ($500 million);
- Light rail in Queensland ($200 million) and in Canberra ($600 million);
- Retail and hospitality development in India ($223 million);
- Columbarium and garden of remembrance in Hong Kong ($320 million).
“We have a steadily improving level of work in hand as public and private clients in our regions continue to invest in substantial infrastructure plans,” Mr Fernandez Verdez said.
CIMIC will pay an interim dividend of 48 cents per share, fully franked, up 4.3 per cent on the prior corresponding period.