Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Opus International 1H profit rises 6% on Canada contribution

Opus International first-half profit rises 6% on Canada contribution

By Jonathan Underhill

Aug. 18 (BusinessDesk) - Opus International Consultants, the engineering firm, reported a 6 percent gain in first-half profit, reflecting the contribution from the Stewart Weir business acquired in 2013, which drove a jump in earnings in Canada.

Profit rose to $9.9 million in the six months ended June 30, from $9.4 million a year earlier, the Wellington-based company said in a statement. Revenue jumped 25 percent to $265 million million. The shares fell 6.6 percent to $1.70 after the results, which were just shy of First NZ Capital's profit forecast of $10 million.

Opus agreed to pay as much as C$90 million for engineering and environmental advisers Stewart Weir last year, including C$40 million of performance-based payments. The acquisition made Canada the company's second-biggest market after New Zealand, where Opus has one of four mandates to lead design the Christchurch rebuild.

Total revenue from North America, mainly Canada, climbed almost four-fold to $57 million, and earnings before interest and tax jumped 289 percent to $3 million, of which $2.3 million was the Stewart Weir contribution. The result includes a fair value gain on financial liabilities related to the Stewart Weir acquisition.

In New Zealand, revenue rose about 5 percent to $147.9 million while Ebit declined 5 percent to $11.2 million in what the company described as "variable market conditions."

"We retain a strong position in Christchurch and have secured significant new contracts such as the five-year Wellington Region Network Outcome contract for the NZ Transport Agency," chief executive David Prentice said.

Revenue in the UK climbed 41 percent and earnings rose 45 percent to $400,000, which Opus said reflected an improving UK economy, a long-term contract with the Hertfordshire County Council and a strong performance from contracts related to Network Rail.

In Australia, revenue fell 18 percent to $33 million, for an Ebit loss of $193,000, which it attributed to a general slowdown in the infrastructure and resource sectors."

The company will pay a first-half dividend of 4 cents a share, fully imputed.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: Fletcher To Close Its Christchurch Insulation Plant, Cut 29 Jobs

Fletcher Building, New Zealand’s largest listed company, will close its Christchurch insulation factory, as it consolidates its Tasman Insulations operations in a “highly competitive market”. More>>

ALSO:

Scoop Business: Novartis Adds Nine New Treatments Under Pharmac Deal

Novartis New Zealand, the local unit of the global pharmaceuticals firm, has added nine new treatments in a far-ranging agreement with government drug buying agency, Pharmac. More>>

ALSO:

Crown Accounts: English Wary On Tax Take, Could Threaten Surplus

Finance Minister Bill English is warning the tax take may come in below forecast in the current financial year, as figures released today confirm it was short by nearly $1 billion in the year to June 30 and English warned of the potential impact of slumping receipts from agricultural exports. More>>

ALSO:

Auckland Outage: Power Mostly Restored Overnight

Vector wishes to advise that all but 324 customers have been restored overnight. These customers are spread throughout the network in small pockets. The main St Johns feeder was restored around midnight allowing most of the customers in all affected areas to have power this morning. More>>

ALSO:

Half Empty: Dairy Prices Drop To Lowest Since August 2009

Dairy product prices fell to the lowest level in more than five years in the latest GlobalDairyTrade auction, led by declines in butter milk powder and whole milk powder. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news