Mining contractor Macmahon has almost doubled its revenue to $710 million in the 2018 financial year in a significant improvement on 2017 figures.
Macmahon chief executive officer Michael Finnegan was pleased with the outcome, and elaborated on some of the major contract work the company had secured over the last year.
“We have achieved very pleasing results for FY18 and are well positioned for FY19 with our order book now at a record $5.4 billion,” he said.
“Over the past 12 months, we secured significant new work and extensions in Australia, including open cut mining work at the Byerwen coal mine in Queensland and the Mount Morgans gold mine in Western Australia, while phase one of the Tropicana Long Island expansion was confirmed.
“We also commenced an underground development project at the Endeavour lead-zinc mine in New South Wales, and an exploration decline at the Tujuh Bukit copper-gold deposit in Indonesia.”
At $710 million, the company’s annual revenue represented a 98 per cent increase on the company’s 2017 financial year results and was ahead of company guidance estimates released in February 2018, the same month the company reported its return to profitability.
Macmahon’s earnings before interest and tax (EBIT) were up in the 2018 financial year to $41.2 million, a stark contrast to the previous year’s loss of $1.7 million.
The growth is expected to continue over the next year based on company guidance of $1 billion in contracted work in the 2019 financial year and a pipeline of tender opportunities worth over $7 billion (with $5 billion among existing clients).
In 2019, EBIT is expected to increase to $70–80 million and revenues are expected to increase to $950 million–$1.5 billion as the company continues its growth.