Leighton HY14 net margin Up to 2.7%

By Joseph R. Fonseca
Monday, July 28, 2014
The Leighton Group reported an increase in total revenue

 

Leighton Holdings announced its results for the six months to 30 June 2014.
 

* Total revenue of $11.9 billion, up on HY13
* EBITDAiii of $843 million. Comparable EBITDAiv of $945 million, up on HY13
* NPAT of $291 million. Underlying NPAT of $319 million, up on HY13
* Net margin (UNPAT to total revenue) of 2.7%, an absolute increase of 0.5% on HY13
* Gearing of 37.1%. Comparable gearing of 36.5%, improved from June 2013
* New contracts, extensions and variationsvii of $7.8 billion and a strong pipeline:

   - Preferred bidder positions of $5 billion
   - 12 month tender pipeline 33% higher than at the FY13 result
   - Largest ever pipeline of tenders greater than $1 billionviii under preparation
* Interim dividend of 57 cents per share, 25% franked, an increase of 27% on HY13.

The Leighton Group reported an increase in total revenue during HY14 of 3% on HY13, driven primarily by growth in construction work, which rose 5% to $7.7 billion.

Executive Chairman and Chief Executive Officer Marcelino Fernández Verdes said: “I’m pleased to report the Leighton Group net margin again expanded during the period, continuing a steady improvement from 1.0% in HY12 to 2.7% in HY14. We expect to further increase net margin as we simplify the structure of the Group.”

The Group’s focus on capital management and the redeployment of mining fleet resulted in a reduction in capital expenditure of 22%.Comparable gearing was 36.5% at 30 June 2014, an improvement from 44.7% at 30 June 2013.

Mr Fernández Verdes said: “Reducing working capital remains a focus. We are improving the approach to working capital management on new projects and seeking to strengthen the balance sheet through the options we are considering as part of the Strategic Review.”

The Group maintained its strong market share during the period, securing $7.8 billion of new contracts, extensions and variations, and it has preferred bidder position on $5 billion in contracts, compared to $3 billion in June 2013.

Mr Fernández Verdes said: “Some $125 billion in new infrastructure project spending is expected by the end of the decade in Australia, including Federal Government commitments and the private and State investment that is expected to follow. Similarly, in our markets in Asia and the Middle East, governments continue spending on infrastructure. This expenditure will be underpinned by the emergence of new, more attractive PPP models, in which we will seek to take on roles as an equity participant, contractor and asset manager.

“We are already seeing the positive impact of the Federal Government’s infrastructure initiatives, with our 12 month tender pipeline approximately 33% higher than the equivalent pipeline at the time of the FY13 result, and, looking further ahead, we have under preparation the largest pipeline of $1 billion-plus tenders in Leighton’s history.

 

Maritime Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter June 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Finance

VEB Guarantees $3 Bln of Yamal LNG Debt

Russian development bank VEB said on Friday it had provided a guarantee for $3 billion of debt to the Yamal liquefied natural gas (LNG) project, led by Russian gas firm Novatek.

US Oil Drillers Cut Rigs after 3 Weeks of Additions

U.S. oil drillers cut rigs this week for a 20th week this year after three weeks of additions, according to a closely followed report on Friday, as crude prices

World Stocks Tumble as Britain Votes for EU Exit

Global capital markets reeled on Friday after Britain voted to leave the European Union, with $2 trillion in value wiped from equity bourses worldwide, while money

News

HCI Capital Renamed Ernst Russ AG

A vote was passed at the ordinary shareholders’ meeting of HCI Capital AG yesterday to change the company’s name to Ernst Russ AG. The Executive Board and Supervisory

ABP orders Two Gottwald cranes

Terex Port Solutions (TPS) has received an order from Associated British Ports (ABP) for two electric Terex Gottwald Model 8 portal harbour cranes in the G HSK 8424 B four-rope grab variant.

Traffic Separation Schemes off Western Australia

On 1 December 2016 two new Traffic Separation Schemes (TSS) will come into effect off the south-west coast of Western Australia. Australia’s proposal to establish

 
 
Maritime Contracts Maritime Security Navigation Offshore Oil Pipelines Ship Electronics Ship Simulators Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1110 sec (9 req/sec)