Civmec reports fiscal 4Q net profit surges more than 8 times

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Civmec reported on Tuesday that its fiscal fourth quarter net profit rose 819.5 percent on-year to S$7.92 million, amid higher contributions from existing contracts as projects previously secured came on line.

Sales revenue increased 130.7 percent on-year in the quarter to S$225.47 million, the heavy engineering and construction provider to the oil and gas sectors said in a filing to SGX after the market close on Tuesday.

Other income for the quarter ended 30 June jumped 804.9 percent on-year to S$2.02 million amid an insurance claim, said Civmec, which also provides services to the metals and minerals, infrastructure and marine and defense sectors.

For the full year, net profit rose 210.3 percent on-year to S$25.5 million, while sales revenue increased 113.5 percent to S$738.74 million, it said.

“The group commenced FY2018 with a strong order book, further enhancing its position during the year with the broadening of scope on several projects, and the finalization of the contract to deliver the Royal Australian Navy’s SEA1180 Offshore Patrol Vessel (OPV) program in April,” it said in the statement.

At the end of the fiscal year, Civmec’s orderbook was at S$706.6 million, it said.

The company was upbeat on the outlook.

“On the strength of our client partnerships and performance, we were awarded significant projects and scope increases during the year. In addition, our investment in a new state-of-the-art shipbuilding and ongoing support maintenance facility, demonstrates how the company can unlock value from its existing operations,” CEO Patrick Tallon said in the statement.

“The investment in skills and transfer of knowledge to local subcontractors and suppliers will support the establishment of a competitive Australian shipbuilding industry and supply chain that can export to the global market,” he added.

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