Cimic profits hit $367m in first half of 2019

Australia’s Cimic Group today announced sustained returns and cash-backed profits for the six months to 30 June 2019, with growth in net cash and work in hand.

Highlights of the result were:

  • Net profit after tax (NPAT) of $367 million (Australian dollars in all cases except where specified);
  • Stable revenue of $7 billion;
  • EBIT, PBT and NPAT margins stable at 8.2%, 7.2% and 5.3% respectively;
  • Solid cash generation, with operating cash flow of $1.8 billion, EBITDA cash conversion rate of 87%, free  operating cash flow of $1 billion (all in LTM);
  • Robust balance sheet, with net cash of $1.4 billion, up 5% since June 2018; strong investment grade rating reaffirmed by Standard & Poor’s at BBB with Stable outlook;
  • Interim ordinary dividend of 71 cents per share, fully franked, payable on 3 October 2019;
  • Diversified order book with $36.8 billion of work in hand, up 8% since June 2018 in operating companies; $8.3 billion of new work won during the first half; bidding discipline maintained;
  • Guidance confirmed for 2019 NPAT in the range of $790 million to $840 million, subject to market conditions.

Cimic Group Executive Chairman Marcelino Fernández Verdes said: "At the half way point in 2019, Cimic Group remains in a strong financial position. Our net cash and work in hand increased consistently and we have a strong foundation for profitable growth. We will maintain focus on optimising our business and leveraging innovative technologies in the construction, mining and services sectors."

Cimic Group announced several important projects, in Australia and abroad, since the start of 2019 including:

  • UGL secured a five-year extension to its contract with Sydney Trains for the delivery of maintenance and logistics services, generating revenue of approximately $630 million;
  • Pacific Partnerships, CPB Contractors, and UGL reached contractual close to deliver the Tunnel, Stations and Development PPP package of Brisbane’s Cross River Rail project, generating revenue of approximately $2.7 billion;
  • CPB Contractors was selected as preferred proponent to deliver Auckland Airport’s taxiway and stands, expected to generate revenue of approximately NZ$200 million;
  • CPB Contractors and UGL were selected as preferred contractors in an Alliance partnership to deliver the Rail, Integration and Systems package of the Cross River Rail project;
  • Pacific Partnerships, UGL and CPB Contractors, in a consortium, were selected to deliver the Regional Rail project as a design, build, finance and maintain contract, generating revenue of $725 million;
  • Thiess secured a nine-year $1.7 billion contract with its joint venture partner at the Jwaneng Diamond Mine in Botswana.

Image: CPB Contractors is working with the Brisbane Airport Corporation to build the New Parallel Runway in a 50:50 joint venture with BMD Constructions (Cimic Group)

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