CIMIC Group Ltd (CIM) - Full Year Results 2017

CommSec CommSec

7 February 2018

RESULTS

Full Year 2017

Full Year 2016

CHANGE

Revenue ($m)

16,110.7

13,534.5

+19%

Revenue consensus ($m)

16,000

 

 

EBITDA ($)

1,513.7

1,095.8

+38.1

EBITDA Margin (%)

11.3

10.1

+120bps

Net Profit After Tax (NPAT) ($m)

702.1

580.3

+21%

NPAT consensus ($m)

686.8

 

 

Interim Dividend (c)

0.75

0.75

No change 

CIMIC Group (CIM) beats expectations after UGL acquisition lifts profits
 
  • Construction, mining contractor and engineering firm CIMIC Group (CIM) recorded a 19% lift in group revenue and a 21% lift in profit for the year, helped by favourable market conditions and strong work in hand across its business units. Net profit after tax was at the top end of company guidance, between $640 million to $700 million, and beat market expectations. CIMIC has increased its scope with recent acquisitions, purchasing UGL Ltd, and mineral processing firm Sedgman over the last year. CIMIC management said it is well positioned “for strategic growth opportunities, including public private partnerships in the future”.
  • CIMIC secured new work of $18.4 billion during 2017, bringing total work in hand to $36 billion and a lift 5.9% from 2016. This was helped by long term contracts from new acquisition partners. Over the year, CIM secured the 15.5 km twin tunnelling project for the new metro railway under Sydney Harbour, with the contract worth $2.81 billion. CIM was also chosen for the construction of Victoria’s multi-billion dollar West Gate Tunnel, generating $2.49 billion in revenue. CPB contractors are undertaking upgrades to Hong Kong and Queensland airports with Leighton Asia confirming it will generate $470 million revenue as part of the Deep Tunnel Sewerage project in Singapore.
  • The acquisition of the UGL group has enabled CIM to increase its position in the Melbourne suburban train network. This also allowed it to secure several solar projects across Australia and a utilities upgrade contract in Singapore.
  • The results showed that CIMIC has been working on cleaning up its balance sheet and integrating new businesses. CIM showed a solid lift in net income, with free operating cash flow up 12% over the year to $1.06 billion. CIMIC announced it expected 2018 Net Profit After Tax between $720 and $780 million.
  • CIMIC will pay out a final dividend of $0.75 a share, higher than analyst expectations of $0.60 a share, on 4 July 2018 with its dividend totalling $1.35 for 2017. CIMIC is majority owned by Germany's Hochtief AG (HOT.XE), which is controlled by Spain's Actividades de Construccion y Servicios S.A. (ASC.MC).

Tags:

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