CIMIC Group Spends Big On Public Infrastructure
- Net profit after tax for the 9 months to 30 September is $303.1 million, compared to $306.6 million earned in the previous corresponding period
- Full year 2021 net profit after tax of $400 million to $430 million reaffirmed
- Total tender pipeline is more than $450 billion, including $100 billion of Public-private Partnership work
CIMIC Group Limited (‘CIMIC’ or the ‘Group‘), formerly Leighton Holdings, provides construction, mining, mineral processing, engineering and maintenance services to the infrastructure, resources and property markets. The Group employs 31,000 people and operates in more than 20 countries.
Financial Result for 9 months to 30 September 2021
Increased public infrastructure spending to stimulate economic recovery from the global pandemic is the catalyst taking the Group’s work-in-hand to $35.1 billion at 30 September 2021. This is an increase of $16 billion during the first 9 months of 2021, of which $5.6 billion has been awarded in the September quarter. Contracts announced in the September quarter include Warringah Freeway Upgrade, - $800 million and Mount Pleasant Operation extension - $920 million.
Net profit after tax for the 9 months to 30 September is $303.1 million, compared to $306.6 million earned in the previous corresponding period. Full year net profit after tax guidance of $400 million to $430 million reaffirmed. Group revenue is up 9.2 percent to $10.91 billion for the 9 months, while net profit after tax margin has declined slightly from 4.6 percent to 4.3 percent. This margin decline is explained by a $35.6 million increase in depreciation and amortisation expense, reflecting a ramp up in tunnelling activity across major projects, including Cross River Rail and Westconnex M4-M5 Link Rozelle Interchange.
Free operating cash flow for the 9 months was $560.7 million, an increase of 6.3 percent, from $527.2 million. Cash flow typically experiences seasonal improvement in the December quarter, which is likely to see lower year-end debt levels than at present.
Net debt at 30 September was $753.8 million, with an average cost of debt of 2.1 percent.
The Group has reaffirmed its earlier FY21 net profit after tax guidance of $400 - $430 million. The Group’s year-end balance date is 31 December.
Significantly, at 30 September, the total future pipeline of tenders to be bid on or awarded is more than $450 billion. This includes more than $100 billion of Public-private Partnership (‘PPP’) work, such as the Cross River Rail project in Queensland, where CIMIC is responsible for the design, construction and maintenance of the tunnel and rail stations.