Diversified contractor Downer EDI was another major industrial (AGL was another yesterday) to disappoint investors with its December half-year figures, despite a one cent a share lift in interim dividend to 14 cents a share.
The shares dipped 4.6% to $7.21 on the news of small improvements in the company’s performance and higher revenues.
Downer reported increases in total revenue, in earnings before interest, tax and amortisation of acquired intangibles assets (EBITA) and in net profit after tax (NPAT).
The result saw total revenue up 8.6% to $6.6 billion, with earnings before interest tax and amortisation of $268 million up from $83 million. Earnings before interest and tax were up from $52.3 million to $236.6 million and statutory net profit rose to $141 million.
Statutory net profit after tax and before amortisation of acquired intangible assets (NPATA) was $163.4 million, up from $5.7 million and up 23.8% from underlying NPATA of $132.0 million.
The engineering and mining and services contractor reported an $11.1 million first-half loss this time last year.
Directors said the improvement was boosted by an absence of one-off items this year and a 27.5% increase in revenue from the utilities business that includes NBN contracts and new renewable energy projects.
Downer raised its full-year guidance for net profit after tax and amortisation (NAPTA) to $352 million from $335 million. That didn’t move the share price.
The improved guidance came a day after the company secured a $900 million order from the NSW government for 17 Waratah Series 2 trains.
Increased activities on the troubled Ichthys’ gas field project in the Northern Territory helped lift first-half construction and maintenance revenue 34.1% to $945.1 million.
Increased activities at the Blackwater coal mine in Queensland and the Carrapateena copper project in South Australia of OZ Minerals, also contributed to the improved performance.
