1Q21 NPAT $100M; GROUP REVENUE1 $3.4BN
FREE OPERATING CASH FLOW2 PRE-FACTORING IMPROVED BY $106M ON 1Q203
STRONG BALANCE SHEET POSITION; $3.7BN OF LIQUIDITY
NEW WORK4 OF $3.5BN, UP $1.2BN YOY; WIH5 OF $30.2BN
FY21 NPAT GUIDANCE $400M TO $430M MAINTAINED
CIMIC Group today announced its financial result for the three months to 31 March 2021:
- NPAT of $100m
- Solid revenue and profit compared to 1Q20 which had no material impact from COVID-19
- Consistent Group revenue of $3.4bn, on a comparable basis6
- Increased EBITDA, EBIT and PDT margins7 of 10.0%, 7.0% and 5.5% respectively, supported by cost reduction initiatives. Stable NPAT margin7 at 4.6% despite impact of tax and minority interests
- Free operating cash flow pre-factoring improved by $106m compared to 1Q20
- Also improved operating cash flow pre-factoring QoQ, compared to prior comparable3 period
- Strong balance sheet position supported by investment grade rating; $3.7bn of liquidity
- Net debt8 position of $(215)m due to seasonality and $184m reduction in factoring
- Signed a $1.4bn three-year syndicated performance bond facility in 1Q21, reflecting strong financial position, addressing strong tender pipeline
- Moody’s strong investment grade credit rating (Baa2/Outlook Stable) confirmed in January 2021. S&P revised its rating (BBB-/A-3/Outlook Stable) in March 2021
- New work of $3.5bn in 1Q21, well positioned to recover to a more normal level in FY21
- Total work in hand of $30.2bn, up $1.2bn year on year, well diversified across Construction, Services and Mining
- As at 31 March, the pipeline of relevant tenders to be bid on / be awarded is approximately $520bn for the remainder of 2021 and beyond, including around $130bn of PPP opportunities
- Outlook across the Group’s core markets remains positive
- Numerous stimulus packages announced by governments in core Construction and Services markets with additional opportunities through strong PPP pipeline
- FY21 NPAT guidance of $400m-$430m maintained, subject to market conditions.
CIMIC Group Executive Chairman and Chief Executive Officer Juan Santamaria said: “We achieved an improved performance for the first quarter on a like for like basis, with revenue growing in the Australian Construction segment and the Services segment reporting a pick-up in operations and maintenance work.
“Cash flow in Australian Construction improved quarter on quarter and was steady from our Services segment.
“Year to date we reduced our factoring balance by $184 million and our supply chain finance balance by $39 million. Greensill’s current financial circumstances have no impact on CIMIC.”
CIMIC was awarded new work of $3.5 billion during the quarter, bringing work in hand to $30.2 billion. Project wins during 1Q21 included:
- Country Regional Network, NSW - $1.5 billion
- Copperstring 2.0 ECI, QLD - $7 million (potential for $1.7 billion)
- Gippsland Rail Upgrade, VIC - $124 million
- Bruce Highway Upgrade Section D, QLD - $289 million
- Ferny Grove Central development, QLD - $100 million
- Several maintenance contracts in the power sector, across Australia.
Mr Santamaria said: “We are well positioned in growth markets, with attractive tailwinds from the COVID-recovery infrastructure spending and a backlog of services and maintenance work.
“Our focus continues to be managing working capital, generating sustainable cash-backed profits and taking a rigorous approach to tendering, project delivery and risk management.”
Refer to ‘Analyst and Investor Presentation’ for further information here.