MARKETS

Decmil hits targets

ENGINEERING and construction company Decmil Group has boosted its half-year profit by 79% by buil...

Kristie Batten
Decmil hits targets

Revenue for the six months to December was up 58% to $A332.9 million, while net profit after tax increased 79% to $23.3 million.

Including a gain arising from the acquisition of the HomeGround Gladstone accommodation village in Queensland, NPAT was $44.1 million.

During the half, Decmil secured $150 million in new contracts, including $60 million of work for Rio Tinto.

Net assets increased to $257.7 million, while cash on hand at the end of the period was $96.3 million.

The company will pay an interim fully franked dividend of 4c per share.

Decmil again reiterated that the current half was unlikely to be as strong, due to the timing of project awards.

However, it has submitted tenders worth $1.2 billion that are expected to be awarded in the coming months.

Decmil chief executive officer Scott Criddle said the company’s diversification had shielded it from a slowdown in the economy.

Diversification would continue through organic growth and acquisitions.

“We are focused on maintaining high cash flow production, which will allow our diversification strategy to be executed from the company’s internal capital resources,” Criddle said.

“While our core business is unchanged, we are certainly examining a number of opportunities within the maintenance and infrastructure sectors which will deliver recurring revenue streams to supplement the project work that has been our staple revenue source since the company was established.”

Decmil shares gained 5c to $2.45.

TOPICS:

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Monthly Intelligence team.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Monthly Intelligence team.

editions

ESG Mining Company Index: Benchmarking the Future of Sustainable Mining

The ESG Mining Company Index report provides an in-depth evaluation of ESG performance of 61 of the world's largest mining companies. Using a robust framework, it assesses each company across 9 meticulously weighted indicators within 6 essential pillars.

editions

Mining Magazine Intelligence Exploration Report 2024 (feat. Opaxe data)

A comprehensive review of exploration trends and technologies, highlighting the best intercepts and discoveries and the latest initial resource estimates.

editions

Mining Magazine Intelligence Future Fleets Report 2024

The report paints a picture of the equipment landscape and includes detailed profiles of mines that are employing these fleets

editions

Mining Magazine Intelligence Digitalisation Report 2023

An in-depth review of operations that use digitalisation technology to drive improvements across all areas of mining production