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CIMIC Group Limited Annual Report 2016 |
Operating and Financial Review
FINANCIAL PERFORMANCE
CIMIC’s financial performance continues to show the benefits of the transformation strategy. The Group’s activity-focused operating
model and attention to producing cash-backed, sustainable profits has delivered NPAT of $580.3 million, an increase of 11.5% on FY15.
Financial performance
$m
2016
2015
chg. $
chg. %
Group revenue
13,534.5
16,128.8
(2,594.3)
(16.1)%
Revenue – joint ventures and associates
(2,680.9)
(2,848.0)
167.1
(5.9)%
Revenue
10,853.6
13,280.8
(2,427.2)
(18.3)%
Expenses
(10,051.2)
(12,427.4)
2,376.2
(19.1)%
Share of profit/(loss) of joint ventures and associates
(44.0)
(14.5)
(29.5)
203.4%
EBIT
758.4
838.9
(80.5)
(9.6)%
EBIT margin
7.0%
6.3%
70bp
Net finance costs
16
(18.0)
(103.9)
85.9
(82.7)%
Profit before tax
740.4
735.0
5.4
0.7%
PBT margin
6.8%
5.5%
130bp
Income tax
(188.0)
(220.6)
32.6
(14.8)%
Profit for the year
552.4
514.4
38.0
7.4%
Non-controlling interests
27.9
6.0
21.9
365.0%
NPAT
580.3
520.4
59.9
11.5%
NPAT margin
5.3%
3.9%
140bp
EPS (basic)
176.6c
153.7c
22.9c
14.9%
REVENUE
Revenue decreased by $2.4 billion, or 18.3%, to $10.9 billion in FY16. Revenue showed a positive growth trend throughout FY16, with
revenue increasing quarter on quarter since 2Q16. Work in hand, a forward indicator of revenue, also increased reflecting this trend.
Refer to section titled ‘New work and work in hand’ of this Operating and Financial Review.
Revenue by segment
17
$m
2016
2015
chg. $
chg. %
Construction
7,316.8
9,319.9
(2,003.1)
(21.5)%
Mining & mineral processing
2,786.2
2,882.8
(96.6)
(3.4)%
Services
204.2
-
204.2
-
Commercial & residential
439.8
987.5
(547.7)
(55.5)%
Corporate
106.6
90.6
16.0
17.7%
Revenue
10,853.6
13,280.8
(2,427.2)
(18.3)%
Revenue – joint ventures and associates
2,680.9
2,848.0
(167.1)
(5.9)%
Group revenue
13,534.5
16,128.8
(2,594.3)
(16.1)%
Group revenue from the various market segments was split 64:36 between domestic and international markets, compared with
63:37 in FY15.
CONSTRUCTION REVENUE
Construction revenue was $7.3 billion for FY16, a decrease of 21.5%, or $2.0 billion, compared to FY15, reflecting the completion of a
number of large, primarily LNG-related infrastructure projects and the transition to the delivery of various large urban infrastructure
projects that are in preliminary stages.
During the period, the major projects by revenue included:
•
rail and road activities in Australia, including Sydney Metro Northwest, WestConnex M4 and M5 in New South Wales, Moreton Bay
Rail Link in Queensland, the CityLink Tulla Widening and the Level Crossing Removal projects in Victoria;
•
social infrastructure projects including the Northern Beaches hospital in New South Wales;
•
LNG-related civil contracts in Western Australia, QGC Surat Basin project and APLNG gas gathering project in Queensland;
•
infrastructure activities in Hong Kong including the Passenger Clearance Building for the Hong Kong Boundary Crossing Facilities, the
West Kowloon Terminus Station, and the Hung Hom Station and Stabling Sidings; and
•
Wynn Palace resort development in Macau.
16
Net finance costs includes interest income of $73.5 million (FY15: $89.9 million), and finance costs of $91.5 million
(FY15: $193.8 million).
17
Sedgman 2015 comparable figures have been reallocated from the corporate segment to an expanded mining & mineral processing
segment.
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