9M19 NPAT OF $573M, UP 2% YOY1; STABLE REVENUE2 OF $10.7BN
SOLID OPERATING CASH FLOW3 OF $811M, UP $500M YOY PRE-FACTORING
ROBUST FINANCIAL POSITION WITH NET CASH OF $826M
DIVERSIFIED WIH4 OF $37.2BN, UP 6% YOY, PROVIDES GOOD VISIBILITY
2019 NPAT GUIDANCE OF $790M TO $840M CONFIRMED
CIMIC Group today announced sustained, cash-backed profits for the nine months to 30 September 2019, with growth in NPAT and solid operating cash flow.
Highlights of the result were:
- NPAT of $573 million, up 2% YOY
- Stable revenue of $10.7 billion
- Strong EBIT, PBT and NPAT margins5 of 8.2%, 7.3% and 5.3% respectively
- Solid operating cash flow of $811 million, up $500 million YOY pre-factoring; free operating cash flow6 of $803 million in LTM
- Robust financial position with net cash7 of $826 million; $294 million returned to shareholders through dividends and share buyback during the third quarter
- Diversified work in hand of $37.2 billion, up 6% YOY, provides good visibility; awarded $13.1 billion of new work8 YTD, up 11% YOY
- Guidance confirmed for 2019 NPAT in the range of $790 million to $840 million, subject to market conditions.
CIMIC Group Executive Chairman Marcelino Fernández Verdes said: “CIMIC Group is on track at the end of the third quarter. The positive outlook across the Group’s core markets supports our full year guidance.
“The mining market continues to strengthen, investment in infrastructure is driving construction and services, and we have a unique position in a growing PPP market.”
CIMIC Group Chief Executive Officer Michael Wright said: “We secured a number of landmark projects during the third quarter. UGL and CPB Contractors together reached contract award for the $900 million Rail, Integration and Systems Alliance package of Brisbane’s Cross River Rail, and Thiess was awarded a $1.3 billion mining services extension at the Curragh Mine in Queensland.
“We also advanced our sustainability commitments, and achieved the highest rating for reporting on environmental, social and governance factors from the Australian Council of Superannuation Investors.”
CIMIC Group announced a number of important projects during the third quarter including:
- Thiess secured a six-year contract extension to provide mining services at the Curragh Mine in Queensland, generating revenue of $1.3 billion
- UGL and CPB Contractors reached contract award for the Rail, Integration and Systems Alliance package of the Cross River Rail in Queensland, generating revenue of $900 million
- CPB Contractors won redevelopment work at the Campbelltown and Nepean Hospitals in NSW, generating revenue of $803 million
- CPB Contractors was chosen to build the new Sydney Metro City and Southwest Pitt Street Station in NSW, generating revenue of $463 million
- UGL announced new rail and mining services contracts across Australia, generating combined revenue of $260 million.
There is a $20 billion pipeline of construction, mining and services opportunities for the remainder of 2019, extending to $475 billion for 2020 and beyond. This pipeline includes around $130 billion of PPP opportunities identified for the remainder of 2019 and beyond.
Mr Fernández Verdes said: “We continue to make progress on our objectives and the Group remains in a strong financial position. Our robust balance sheet provides flexibility to pursue strategic growth initiatives and capital allocation opportunities. We are also focused on delivering returns to shareholders, with highlights including strong dividends and a share buy-back.”
Refer to ‘Analyst and Investor Presentation’ for further information.
1 Year on year performance during nine-month period to 30 September 2019 compared to the nine-month period to 30 September 2018.
2 Revenue excludes revenue from joint ventures and associates of $1,802.8 million (9m18: $2,049.9 million).
3 Operating cash flow includes cash flow from operating activities and changes in short term financial assets and investments before interest, finance costs and taxes
4 Work in hand (WIH) includes CIMIC’s share of WIH from joint ventures and associates.
5 Margins are calculated on revenue which excludes revenue from joint ventures and associates.
6 Free operating cash flow is defined as net operating cash flows less net capital expenditure for property, plant and equipment.
7 Net cash/(debt) includes cash and equivalent liquid assets (which includes cash, cash equivalents and short term financial assets and investments).
8 New work includes new contracts and contract extensions and variations including the impact of foreign exchange rate movements.