Spanish-controlled constructor and contract miner CIMIC (the old Leighton Holdings) has rewarded shareholders for a second period with a 25% increase in interim dividends as revenues grew in all of its core businesses lifting half year profit by 22%.
CIMIC, which is 73% owned by Germany’s Hochtief (which is in turn controlled by Spanish constriction giant, ACS), lifted its fully franked interim dividend by 12 cents to 60 cents a share.
That was after a 24% jump in final dividend for 2016.
The company which is involved in major road projects including Sydney’s WestConnex and the widening Melbourne’s CityLink, reported a net profit of $323 million in the six months to June 30, up from $265 million in the same period a year ago.
That was on a 28% jump in revenue to $6.3 billion.
A substantial increase in the company’s net cash position had allowed CIMIC to better reward shareholders and more efficiently allocate capital, executive chairman Marcelino Fernandez Verdes said yesterday.
And CIMIC confirmed its guidance for a full year net profit of $640 million to $700 million, up from previous year’s $580 million and hinting at a higher final payout for shareholders.
Chief executive Adolfo Valderas said in yesterday’s the company was achieving strong profit and cash flow contributions from its construction, mining, services, and public-private partnership operations.
In the six months to June, CIMIC increased its work-in-hand by $8.9 billion to a total of $35.2 billion, equal to more than two years of revenue.
Important contract wins included stage 2 of design and construction works for the Sydney Metro rail project, mining services work at the Solomon iron ore mine in Western Australia and the Mount Pleasant coal mine in NSW, and the construction of Hong Kong’s East Kowloon Cultural Centre.
CIMIC said its growth would be supported by nearly $50 billion of tenders over the rest of 2017, and $320 billion of projects coming to the market from 2018.
The shares were up 1.4% at $38.80.
