Cimic Unveils Bigger Order Book as 1st Half Profit Lifts

By David Winning

SYDNEY--Construction and mining services contractor Cimic Group Ltd. (CIM.AU) on Wednesday said its first-half net profit edged higher, supported by a bigger order book spanning New Zealand to southern Africa.

The Australia-listed company reported a net profit of 366.7 million Australian dollars (US$257 million) for the six months through June, up 1.1% from a year earlier. Revenue lifted by 0.3% to A$6.96 billion, while net cash increased by 5% to A$1.4 billion.

"We have a strong foundation for profitable growth," said Executive Chairman Marcelino Fernández Verdes in a regulatory filing.

Cimic stuck with an earlier forecast for a A$790 million-A$840 million net profit in 2019, which would represent an increase of 7.6% if the top end of the guidance range is achieved. Directors of the company proposed an interim dividend of A$0.71 per security, slightly higher than the A$0.70 payout at the corresponding stage a year earlier.

Investors focus on Cimic's work pipeline as a signal about future profits. Cimic said its order book had risen by 8% over the past year to A$36.8 billion, and recent wins include a five-year extension to a deal providing support services to Sydney Trains in Australia, and a nine-year contract to provide work at the Jwaneng diamond mine in Botswana.

-Write to David Winning at [e-mail]

(END) Dow Jones Newswires

July 17, 2019 03:28 ET (07:28 GMT)

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