The local earnings season rolled along on Wednesday in a slightly happier environment – here’s what engineering group Worley, medical conglomerate Sonic Healthcare and energy distributor APA had to say.
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Energy engineering group Worley (ASX: WOR) managed to hang on to the carbon energy boom in the 12 months to June 30, as its clients ramped up their plans.
Worley posted a 3% rise in total revenue to $9.06 billion and a 55% jump in statutory net profit after tax and amortisation to $243 million for the year to June.
The shares closed up more than 4% at $14.74 after being up 6% in early trading.
Underlying EBITA of $547 million was an 18% improvement on a year who while it saw a 19% rise in underlying after-tax profit to $329 million.
But annual dividend was left steady at 50 cents a share after an unfranked final of 25 cents a share, also unchanged from a year ago.
Worley CEO Chris Ashton said in the statement to the ASX on Wednesday:
“These results are indicative of continued market expansion in both our traditional and sustainability related work. We have delivered an improved result against a backdrop of geopolitical and economic challenges.
“This is a direct result of the changes we’ve made to our business. We’ve set up a scalable business, and we’re delivering ongoing benefits from our cost‑saving programs.”
Looking to the next year, Worley was more cautious than effusive.
It expects to maintain 2021-22’s underlying net margin of 6% into the 2022-23 year and it says it is seeing indicators that point to improving revenue.
Sustainability-related work now accounts for 50% of its factored sales pipeline, placing it in a leadership position for the energy transition.
It’s also investing $100 million in organic growth over three years to boost its sustainability solutions, digital enablement, and process technology.
Worley also pointed out that 35% of total revenue, or around $3.2 billion came from sustainability work in the June 30 year. That was up from $2.8 billion the year before.
Worley also said it had a $15.4 billion backlog at June 30.
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Being on the frontline of the Covid battle is still generating solid returns for Sonic Healthcare (ASX: SHL), the Australian-based global testing business.
The company yesterday revealed record revenue and earnings for the year to June which it said were “driven by COVID testing, base business growth and acquisitions.”
That news saw the shares end up more than 5% at $35.09 on Wednesday.
Sonic will pay a total dividend for the year of $1 a share, up 10% on the previous year. The final of 60 cents a share was up 9% from a year earlier.
Sonic said it earned a record net profit of $A1.5 billion on record revenues of $A9.3 billion.
It invested $A628 million in what it called “synergistic acquisitions and joint ventures in the year, with further opportunities being pursued.”
Sonic said it had $A1.6 billion of available liquidity with the on-market share buy-back of up to $A500 million well progressed as part of active capital management.
Sonic CEO, Dr Colin Goldschmidt, said: “Sonic’s revenue grew organically by 5% for the year, with base business organic growth of 2.1% augmented by significant growth in COVID-related revenues.”
“The contributions of synergistic acquisitions took total growth for the year to 7%. Twelve months ago, we would never have expected our COVID-related revenues to grow by 13% in 2022.
“It remains difficult to predict future revenues from COVID-19 testing, however we do expect ongoing demand, coupled with seasonally weighted increased testing for other respiratory viruses.”
“Barring a significant worsening of the pandemic, we also expect our base business growth to accelerate, driven by the normal strong industry growth drivers, market share gains and the clearing of backlogged testing postponed during the pandemic.
“Since the start of the pandemic we have performed over 55 million COVID-19 PCR tests across our seven countries of operation, in addition to providing COVID-related antibody testing, genetic sequencing and vaccination services.”
“Concurrently, we have also provided non-COVID essential medical diagnostic services for more than 100 million patients a year. Throughout this challenging period our staff have been unified by our culture of Medical Leadership, which focuses on providing the best possible care for our patients and service for their physicians.
“Our culture serves to inspire our staff to exceptional service and provides us with competitive advantage in our global markets. I would like to express my great appreciation and admiration for our staff for the way they embrace and enhance our culture and values, even in the most difficult of times,” he told the market.
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And finally, energy distributor APA Group (ASX: APA) has told its investors to expect a further increase in its distributions in 2022-23 after confirming a mixed profit performance for the year to June 30.
APA unexpectedly lost newish CEO, Rob Wheals this week and investors had wondered if any clues to his surprise departure might be found in the 2021-22 results, issued on Wednesday.
There didn’t seem to be, although the company has ended its US expansion dreams.
Bottom line profit jumped 35.3% to $259.7 million but was boosted by one-off items. Before one-offs, profit slid 13.9% to $240 million which was not a convincing outcome.
APA said its underlying EBITDA rose 3.9% to $1.692 billion from 2020-21’s $1.629 billion “driven by solid performance from key energy Infrastructure assets and positive leverage to inflation.”
The full year distribution of 53.0 cents a security is up 3.9% (one cent) on the 2021 financial year and in line with guidance. The final is 28 cents a security, up one cent a security.
The 2022-23 guidance for distributions was raised to an “anticipated 55.0 cents a security, up 3.8% on 2022.”
That was seen by some analysts as a bit light on and the securities drifted nearly 2% lower to end at $11.32.
CEO Rob Wheals said in Wednesday’s release, “APA has delivered another solid result in a year that has highlighted the critical role that APA’s gas transmission assets play in delivering energy security to Australians when it is needed most.
“Gas power generation and APA’s existing gas infrastructure has stepped up to help fill the electricity supply gap across Australia’s east coast, underscoring the critical role that gas and gas infrastructure will play as the energy transition accelerates, including as the perfect complement to firm renewable generation.”
APA said it “invested over $500 million in growth projects in FY22 as part of our strategy of investing in energy infrastructure for today and tomorrow. Importantly, organic growth continues to be sourced across all of APA’s strategic focus areas, with new projects underway across gas transmission and renewable energy generation.”
