Record returns for resource engineering companies

CIVIL engineering and construction company Decmil has posted a record 66% increase in net profit after tax and a 41% rise in revenue for the 2011-12 financial year, while RCR Tomlinson and the Calibre Group also impressed.
Record returns for resource engineering companies Record returns for resource engineering companies Record returns for resource engineering companies Record returns for resource engineering companies Record returns for resource engineering companies

Decmil Group

Ron Berryman

Decmil said its revenue of $A555.6 million $39.1 million profit reflected the ongoing demand for the company’s core services from the major mining and oil and gas sectors.

In a continuing indication of the flow-on effects of the growth of the Australian resource sector, two other engineering and project delivery operators, RCR and Calibre also reported record profits for the last financial year.

RCR net profit after tax was up 40% to $27.3 million and revenue jumped 40% to $808.7 million over 2010/2011. As the new kid on the block after listing on the Australian Securities Exchange on August 2, Calibre out-performed its prospectus guidance recording net profit after tax and goodwill amortisation earnings of $46.5 million on revenue of $560.9 million.

All three companies reported a strong order book for the current financial year.

Decmil declared a fully franked final dividend of 7.5c per share; RCR a dividend of 6.25c per share; while Calibre plans to declare its first dividend payment in April 2013.

Decmil’s cash in bank at the end of the financial year was $141.1 million (up 120%); RCR’s was $45.2 million; and Calibre reported it had an operating cash flow of $73.7 million.

Decmil chief executive officer Scott Criddle said the company had grown from being a Western Australian operator into a national business.

“We now have extensive operations in Queensland, including the major accommodation village we are developing and managing near Gladstone, which in future years will deliver a recurring revenue stream to Decmil,” he said.

“The company’s growth over the past year has led us to our admission to the S&P/ASX200 index, reflecting our market capitalisation and growing market interest in the Decmil story.”

RCR managing director Paul Dalgleish said the past financial year had seen the company gain considerable momentum.

“With order intake for the year of $1.2 billion and a forward book of $618 million, RCR is well positioned to continue to deliver revenue growth,” he said.

“The order book remains well balanced between recurring and project revenues, which are lower risk, and fixed price contracts.

“RCR’s record performance this financial year has significantly strengthened our balance sheet, which enables us to further expand our large project delivery capability and consider suitable acquisitions in order to provide a material step change for the company.”

In early trading Decmil was up 18.5c to $3.145; RCR Tomlinson was up 3c to $1.795; and Calibre Group was up 3c to $1.39.

This article first appeared in ILN's sister publication MiningNews.net.

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