2018 NPAT OF $781M, UP 11%, AT TOP END OF GUIDANCE
CASH FLOW FROM OPERATING ACTIVITIES1 OF $1.9BN UP 22%; EBITDA CONVERSION 109%
ROBUST BALANCE SHEET WITH NET CASH OF $1.6BN, UP $709M
SUSTAINED REVENUE2 GROWTH, UP 9% TO $14.7BN
FINAL DIVIDEND OF 86 CENTS PER SHARE, UP 15%
ORDER BOOK3 OF $36.7BN; NEW WORK4 OF $17.9BN; INCREASED PIPELINE
2019 NPAT GUIDANCE OF $790M TO $840M
CIMIC Group today reported a strong performance for the 12 months to 31 December 2018, achieving the top end of profit guidance and substantial increases in cash flow and net cash.
Highlights of the 2018 result compared with 2017 were:
CIMIC Group Executive Chairman Marcelino Fernández Verdes said: “2018 was another successful year for CIMIC Group, as we continued to deliver substantial growth in profit, cash and dividends.
“In 2018, we focused on enhancing the capability of our Operating Companies to provide integrated solutions, ensuring we deliver enduring value for our clients across the lifecycle of their assets, infrastructure and resources projects.
“This collaborative approach has driven an excellent result for our shareholders, is providing exciting opportunities for our people, and will power the next phase of our transformation through digitalisation and innovation.
“Reflecting the strong profit result and cash generation, the Board has declared a final dividend of 86 cents per share, up 15% year on year.”
The final dividend will be paid on 4 July 2019 and franked at 100%. Total dividends declared for 2018 were 156 cents per share, up 16% year on year, representing a dividend yield of 3.6% on a closing share price of $43.41 as at 31 December 2018.
From 2015 to 2018, CIMIC has returned $2 billion of cash to shareholders through dividends and share buy-backs, including an increase in annual dividends declared from 96 cents per share to 156 cents per share, a 17.6% compound annual growth rate.
CIMIC Group Chief Executive Officer Michael Wright said: “A year ago we targeted an NPAT of $720 million to $780 million. I’m pleased to report we have achieved the top end of this range, supported by a strong operating performance. We have also generated increased cash flow and further strengthened our balance sheet.
“We have a growing and diverse portfolio of work in hand across our core businesses. With a focus on providing full lifecycle capabilities for our clients, our work in hand grew to $36.7 billion at the end of 2018, driven by a $1.8 billion increase in Operating Company projects, which are our core markets.”
The Group’s end-to-end capabilities were demonstrated during the period by:
Other notable wins during the period included:
Looking forward, at least $130 billion of tenders relevant to CIMIC Group are expected to be bid and/or awarded in 2019, and around $300 billion of projects are coming to the market in 2020 and beyond, including about $120 billion worth of PPP projects.
With a robust work in hand position and a continued focus on bidding discipline, 2019 NPAT is expected to be in the range of $790 million to $840 million, subject to market conditions.
Mr Fernández Verdes said: “Our pipeline of work has further increased and we have a positive outlook for 2019 and beyond. This is led by the strong performance of the mining sector, an increasing level of infrastructure opportunities in Australia, and the trends towards more outsourcing of services and for greater investment in PPPs.”
Refer to the following documents for further information: