Civmec has reported a 52% quarter-on-quarter increase in its order book for the March Quarter 2019 on the back of major contract wins in the resources sector.
Order book has grown to A$820 million from $540 million at end of December 2018 on the back of major contracts including Civil and Structural, Mechanical and Piping (SMP) works for Australia’s largest lithium hydroxide plant to be built in WA’s southwest.
Work on the project – owned by Albemarle Lithium – also includes supply of equipment on behalf of Metso, including three 56-metre-long kilns, weighting approximately 200 tonnes each.
Other noteworthy package awards during the period included the fabrication and modularisation of key components for BHP’s South Flank iron ore mine currently under construction in the Pilbara region in Western Australia.
Civmec has secured works on this project directly with BHP and via ThyssenKrupp.
Meantime, construction of the new 70-metre-high mega shipbuilding facility remains on schedule for completion in late 2019.
This facility will greatly enhance production and assembly output and will be available for future undercover ship maintenance requirements.
Fabrication and construction of 10 of the 12 vessels being commissioned under the Royal Australian Navy’s SEA 1180 Offshore Patrol Vessel program will take place in the new facility.
For the nine months to 31 March 2019, Group NPAT came in at A$6.9 million on a revenue of A$415.1 million.
During the March quarter, Civmec prudently accounted for existing and forecasted cost overruns whilst working towards completion of some of its EPC projects resulting in revenue of A$80.0 million and gross profit of A$5.3 million for the quarter ending 31 March 2019 (NPAT A$141k).
Shares in Civmec were trading Wednesday at 40.5c.
