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

 

Bullish On China Shock: Slumping Equities, Commodities May Continue, But Not A GFC

The biggest selloff in stock markets in at least four years, slumping commodity prices and a surge in Wall Street's fear gauge don't mean the world economy is heading for another global financial crisis, fund managers say. More>>

ALSO:

Real Estate: Investors Driving Up Auckland Housing Risk - RBNZ

The growing presence of investors in Auckland's property market is increasing the risks, and is likely to both amplify the housing cycle and worsen the potential damage from a downturn both to the financial system and the broader economy, said Reserve Bank deputy governor Grant Spencer. More>>

ALSO:

Annual Record: Overseas Visitors Hit 3 Million Milestone

Visitor arrivals to New Zealand surpassed 3 million for the first time in the July 2015 year, Statistics New Zealand said today. The record-breaking 3,002,982 visitors this year was 7 percent higher than the July 2014 year. More>>

ALSO:

The Future: Thirty Year Infrastructure Plan Released

The Thirty Year New Zealand Infrastructure Plan 2015 sets out New Zealand’s response to the infrastructure challenges we will face over the next three decades, Finance Minister Bill English says. More>>

ALSO:

Shopping: Online GST Discussion Document

GST: Cross-border services, intangibles and goods contains proposals to require overseas suppliers to register and return GST when they sell services (including online products such as e-books, music and videos) to New Zealand consumers. It also outlines the way forward for improving the collection of GST on all goods, including low-value imported goods. More>>

ALSO:

Keith Rankin: Auckland Slowdown?

Has the Auckland housing market turned? I went to a neighbourhood auction yesterday. Solid large 1950s' house on 1,000 square metres of land, sunny section, view over city from front of house, handy to train and to the expanding New Lynn retail and commercial hub. More>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news