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CIMIC lifts dividend as FY profit climbs

Simone Ziaziaris  |  07 Feb 2018Text size  Decrease  Increase  |  
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SYDNEY - [AAP] CIMIC's (ASX: CIM) shares have soared after the construction giant announced a 21 per cent lift in full-year profit to $702 million and raised its dividend by 13 cents.

The net profit for the 12 months to December 31 was up from the previous year's $580.3 million and just exceeded the top of its target range.

Revenue--excluding joint ventures and associates--was up 24 per cent at $13.4 billion, driven by solid contributions from all core businesses.

Executive chairman Marcelino Fernandez Verdes said CIMIC had finished the year well positioned for future growth opportunities, including public private partnerships, and had sustained shareholder returns.

He said the company's strong performance had enabled the board to declare a fully franked final dividend of 75 cents per share, up from 62 cents a year ago.

"This represents a full-year payout ratio of 62.3 per cent of net profit after tax," Mr Fernandez Verdes said.

The results sent CIMIC shares up 5.6 per cent to $47.43 by 1038 AEDT on Wednesday.

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Mr Fernandez Verdes also said there were about $110 billion worth of tenders relevant to CIMIC Group to be bid or awarded in 2018, and about $285 billion of projects coming to the market in 2019 and beyond--including about $65 billion worth of public private partnership projects.

"Our focus is to continue to develop our safety and performance culture, further develop our presence in the public private partnership market and deliver additional client value through collaboration opportunities amongst our companies," he said.

The company lifted its 2018 net profit guidance range to between $720 million and $780 million, an increase of three per cent to 11 per cent on the 2017 financial year, subject to market conditions.

CIMIC LIFTS DIVDEND ON PROFIT GROWTH:

* Net profit up 21pc to $702.1m

* Revenue up 24pc to $13.4bn

* Fully franked dividend of 75cps, up 13 cents

 

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© 2021 Australian Associated Press Pty Limited (AAP) or its Licensors. This is the Morningstar service with content provided by AAP where indicated. AAP reserves all rights, including copyright, in services provided by it. The information in the service is for personal use only, does not constitute financial product advice (whether general or personal) and may not be re-written, copied, re-sold or re-distributed, framed, linked or otherwise used whether for compensation of any kind or not, without the prior written permission of AAP. You should seek advice from a professional financial adviser before making decision to acquire or dispose of a financial product.

This service is published for general information purposes only without assuming a duty of care. AAP is not in the business of providing financial product advice (whether personal or general advice), and gives no warranty, guarantee or other representation about the accuracy of the information or images contained in this service. AAP is not liable for errors, omissions in, delays or interruptions to or cessation of the services through negligence or otherwise. The globe symbol and "AAP" are registered trademarks.

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