ENGINEERING and construction company Civmec posted a 12.9 per cent increase in net profit to A$31.9 million (S$27.9 million) for the first half ended Dec 31, 2023, on the back of higher revenue.
This is up from A$28.2 million in the previous corresponding period, the Australia-headquartered company said in a bourse filing on Wednesday (Feb 14).
Earnings per share came in at A$0.0629 compared to A$0.056 in the same period a year earlier.
The board of Civmec has declared an interim dividend of A$0.025 per share, up from A$0.02 per share.
H1 revenue increased by 17.5 per cent to A$492.3 million from A$418.9 million, while net profit margin dropped 0.2 percentage point to 6.5 per cent over the same period.
The group also strengthened its balance sheet, increasing its net cash position to A$83.1 million from A$12.8 million, with its net assets growing 12.4 per cent to A$437.9 million.
Net asset value per share rose to A$0.863 from A$0.771.
Operational highlights from the six-month period included the completion of the Port Hedland maintenance facility, described as a “significant milestone” in helping the company increase its market share in maintenance services in the Pilbara.
It also completed a major civil and concrete works package for the Iron Bridge Magnetite Project, also in the Pilbara region, and secured its first contract under a statewide road project in Western Australia.
The group also noted that its order book has been maintained above A$1 billion, which it says demonstrates its ability to perform multiple maintenance and capital upgrade contracts as well as resources construction packages.
It is also continuing the process of its proposed change of domicile from Singapore to Australia (first announced in October 2023), which will be achieved through a restructuring of the company by way of a scheme of arrangement.
It added that it is working with the relevant regulatory bodies in both countries to gain approval and finalise the scheme documents before submitting the proposal to a shareholder vote, though it did not specify a time frame.
Shares of Civmec closed 0.6 per cent or S$0.005 higher at S$0.795 on Wednesday, before the announcement.
