CIMIC GROUP
CIMIC Group today announced improved results for t work.
e first half of 2015 and $7 billion in new
The Group also reported strong operating cash flow1 which, together with pr oceeds fro divestments2, enabled $1 billion of debt repayments.
the
CIMIC further de‐risked, delev
raged and strengthened its balance sheet duriing the second
quarter, with gearing3 and net contract debtors4 improving.
Features of the HY15 result were:
New work
rders of $7 billion, bringing work in hand to $
8.5 billion;
Operating cash flow of $853.2 million;
Earnings before interest and tax (EBIT) of $43
.3 million5 and net pro fit after tax (NPAT)
of $257.2 million, increases of 15.1% and 7.5% respectively on the priior comparable period6;
EBIT and N
AT margins of 6.1% and 3.6%, rep esenting 150 and 70 b asis point increases
on the prior comparable period6;
Net contract debtors of $1.9 billio or 15.1% from 31 March 2015; and
as at 30 June 2015, an improvement of $336.0 million
Gearing of 5.3% as at 30 June 2015, an improvement fro
12.1% as a t 31 March 2015,
due to strong operatin
cash inflows.
The Board resolved to pay a 100% franked interim dividend of 46 cents per s hare, representing a
60% payout ratio of HY15 NPAT, payable on 2 October 2015.
CIMIC Executive Chairman and Chief Executive Officer Mr Marcelino Fernánd ez Verdes said: "In
2014 we delivered phase one of CIMIC's transformati
n by reorganising our operating model
into a streamlined, simplified and efficient structure,
risking the balance sheet.
nd substantially stren gthening an
de‐
"Phase two continues the focus on standardisation, simplification and strea mlining by making
improvements to the efficienc
enhancing the capital disciplin
of our business and IT systems, further reduc ing costs, and
within our Operating Companies."
Work in hand as at 30 June 2015 was $28.5 billion.
1 Cash flow from operating activities is before dividends, interest, finance costs and tax.
2 The John Holland divestment and the Services divestment and investment partnership were accounted for in December 2014. Receipt of
cash fro
the divestment transactions occurred in HY15.
3 Gearing is expressed as the ratio of net debt and operating leases to net debt, operating leases and sharehol ers' equity.
4 Net contract debtors repr sent the net of amounts due from customers and amounts due to customers, (refe r to the Interim Financial
Report, 'Note 9: Trade and Other Receivables - Additional information on contract debtors').
5 EBIT excludes interest income (HY15 $53.3 million, HY14 $38.6 million).
6 Performance is to comparable HY14 which includes 50% of Leighton Services in continuing o erations.
During the period, CIMIC secured $7 billion of new contracts, extensions and variations. Amongst others, this included a $900 million award for Sydney's M4 East Motorway7 and a $474 million award for works on the Shatin to Central Line in Hong Kong8.
CIMIC was also awarded a $1.2 billion contract to develop a boundary control point between
Hong Kong and China, the largest project won by our Hong Kong business as a sole contractor.
The mining business also signed a $175 million services agreement for a copper mine in Chile. Mr Fernández Verdes said: "This project is a significant milestone for our mining business,
showing the opportunities for our global mining capabilities in North and South America. We
have over $5 billion of tenders in contract mining as we seek to further our diversification by
geography and commodity.
"Looking ahead we have tendered on, or we are shortlisted to tender on, several major construction projects including WestConnex stage two in Sydney and the Airport Link and Freight Link in Perth. In total CIMIC has approximately $20 billion9 of new tenders which are expected to be awarded in the second half of 2015, showing the strong project opportunities in our markets in Australia and Asia."
CIMIC confirms 2015 forecast NPAT in the range of $450 million to $520 million, subject to market conditions.
ENDS
Ms Marta Olba, Group Manager Investor Relations T+61 2 9925 6134
Ms Fiona Tyndall, Group Manager Media Relations T+61 2 9925 6188
CIMIC Group Limited (ASX: CIM), founded in Australia in 1949, is one of the world's leading international contractors and the world's largest contract miner. CIMIC, previously known as Leighton Holdings, was listed on the Australian Stock Exchange in 1962 and has its head office in Sydney, Australia. CIMIC provides construction, mining, engineering, concessions, and operation and maintenance services to the infrastructure, resources and property markets. It operates in more than 20 countries throughout the Asia Pacific, the Middle East and Southern Africa and employed approximately 25,000 people as at 30 June 2015.
7 The M4 East Motorway is part of the first stage of WestConnex. The award is in joint venture with John Holland and Samsung (CIMIC's share is approximately $900 million).
8 The award is in joint venture with China State Construction Engineering (Hong Kong) (CIMIC's share is $474 million).
9 CIMIC's share.
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