Decmil results buoyed by resources contracts

Decmil Group Managing Director and CEO, Scott Criddle, says the group is seeing strong market conditions in the infrastructure, resources and renewable energy sectors across Australia and New Zealand and expects its revenue growth to continue in the near term.

Criddle’s assessment came after the company published its financial results for the six months to end-December, which saw revenue climb 96% higher year-on-year to A$276 million ($196 million) as the company secured several new and larger contracts in the latter part of 2018. Among these was a contract extension from BHP related to work on the Mulla Mulla village in Western Australia.

During the period, the company also completed projects for Fortescue Metals Group, in relation to its Port Hedland tug harbour, and non-process infrastructure for Rio Tinto at its Amrun bauxite mine.

Earnings from continuing operations before interest, tax and depreciation was A$9.3 million, up from $1.3 million a year earlier, while the group generated operating cash flow of A$30.9 million for the six months, up from A$1.7 million previously.

As of the end of February, Decmil said it had around A$650 million of committed revenue for the full 2019 financial year and more than A$400million of work in hand (contracted and preferred) for the 2020 financial year.