Construction and contract mining giant CIMIC Group’s quarterly profit has jumped 23 per cent and it says it has a solid pipeline of potential projects and opportunities to expand its mining and mineral processing activities.
CIMIC made a net profit of $160.3 million in the three months to March, up from $130.3 million a year earlier.
It has reaffirmed its guidance of an annual profit of between $640 million and $700 million in 2017.
Chief executive Adolfo Valderas told shareholders at the company’s annual general meeting on Thursday that there was nearly $80 billion worth of tenders relevant to CIMIC to be awarded over the rest of 2017, and around $250 billion for 2018 and beyond.
“Looking forward, clients in our markets are continuing to invest, driving demand for our expertise in services, public private partnerships, mining and mineral processing, construction and engineering,” he said.
“We expect to continue to expand our mining and mineral processing activities into other markets, for example, by exporting our contract mining skills further into North and South America, proving us with additional diversification.”
CIMIC also said it would keep its options open in relation to mining services provider Macmahon Holdings, in which CIMIC holds a 23.6 per cent stake after its recent takeover effort.
“We will keep our options open depending on the evolution of the company,” Mr Valderas said.
The recent acquisition of engineering, construction and maintenance firm UGL also provides CIMIC with a further platform for expansion, he said.
The company is shortlisted for several large projects, including the Melbourne Metro rail link, the Sydney Metro tunnels and station excavation works, some projects under the Western Sydney roads upgrade program, and phase two of the Deep Tunnel Sewerage System in Singapore.
CIMIC shares rose two cents to $36.42.