CONSTRUCTION and engineering services provider Civmec : P9D 0%’s net profit rose 16.9 per cent to A$17.1 million (S$15.3 million) for the third quarter ended Mar 31, from A$14.6 million in the year-ago period.
The Australia-headquartered company’s revenue for the quarter was up 37.6 per cent to A$258.3 million, from A$187.8 million in Q3 2023.
Earnings per share stood at A$0.034, up from A$0.029 in the same period last year.
Announcing the company’s financial results on Thursday (May 9), Civmec chairman James Fitzgerald said: “An increase in the volume of maintenance-related awards reflects our increasing focus on maintenance works as a significant pillar of growth for the company.”
Civmec, which is also listed on the Singapore Exchange, reported a net profit of A$49 million for the first nine months of its 2023 financial year. This was up 14.2 per cent from A$42.9 million in the year-ago period.
For the nine-month period ended Mar 31, Civmec’s revenue grew 23.7 per cent year on year to A$750.7 million.
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Noting that the Australian government has committed to spending up to A$25.7 billion on maritime defence capabilities to be built in Western Australia over the next 10 years, Civmec said the long-term outlook for shipbuilding is “promising”.
“Tendering activities across the group’s operations are at historically high levels, with current priced opportunities approaching A$10 billion as Civmec works closely with a range of clients on approved expansion, sustaining and maintenance opportunities as well as on a budgetary level for projects under feasibility studies,” it said.
On Thursday, Civmec also provided an update on how it is proposing to change the domicile of the head company of the group from Civmec Limited (domiciled in Singapore) to Civmec Australia Limited. This is in view of Civmec’s operations and workforce being entirely Australia based.
Civmec said: “The change in domicile will be achieved through a restructuring of the company by way of a scheme of arrangement which will position Civmec to better meet local content requirements, increasing the number of available opportunities for Civmec.
“The company is working with relevant regulatory bodies in Australia and Singapore to finalise the scheme documents and gain regulatory approvals before submitting the proposal to a shareholder vote.”
Shares of Civmec closed flat at S$0.775 on the Singapore bourse on Thursday.
