Underlying NPAT was up 29% to $159 million, while underlying NPAT margin of 2.8% was up 0.5% on the same time last year.

Revenue rose 7% to $5.7 billion.

“This result was driven by strong performances in infrastructure and oil and gas construction, and our ongoing focus on margin expansion initiatives,” Leighton CEO Marcelino Fernandez Verdes said.

“At the end of the quarter, our gearing had improved to 38.5% from 47.2% in the prior comparative period.

“This was in line with our expectations and is consistent with historical seasonal working capital requirements in the first quarter of the year.”

Leighton confirmed its gearing guidance of 20-35% by the end of the year.

“Our ongoing disciplined approach to investment in plant and equipment saw capital expenditure reduce 34% when compared to the prior comparative period,” Fernandez Verdes said.

“We have a substantial level of work in hand of $40.9 billion, which underpins our profitability for the next few years.

“During the quarter we secured $4.4 billion of new contracts, extensions and variations which was approximately 10% higher than new work orders awarded in the prior comparative period.”

Fernandez said the group remained focused on winning high quality projects.

“Our markets are continuing to offer a good range of new project opportunities especially in infrastructure construction and we are confident that we are well positioned to participate,” he said.

“Subject to market conditions and unforeseen circumstances, we reiterate our market guidance to deliver an underlying net profit after tax in the range of $540 million to $620 million in 2014.”

Leighton is in the midst of a proportional takeover from major shareholder Hochtief, which was declared final on May 2 ahead of the close of the offer on Friday.

Today Hochtief said it had increased its stake in Leighton from 61.1% to 62.6%.

Leighton shares rose by 1.3% to $19.39.