Mining and construction group Macmahon Holdings has posted record underlying operating earnings for FY22, achieved during a period of significant operational challenges across the broader mining industry, building upon the company’s track record of disciplined execution of its strategy.
Revenue came in at $1.698 billion, up 25.7 per cent from the previous $1.351b, within the full year guidance range of $1.6b–$1.7b, primarily driven by the contribution from new project start-ups, inflation and increased contract activity extending from the first half into the second half of the year.
Macmahon chief executive officer Michael Finnegan said a focused strategy to grow, diversify and broaden the business had enabled the company to deliver revenue and earnings in the upper half of the guidance range in an environment of rising costs and supply chain disruptions.
“With a number of new contract start-ups across the business we have grown our workforce by 11 per cent to 7848 employees, notwithstanding the significant labour pressures in Australia, and are well positioned to successfully deliver on our projects into FY23,” he said.
“Macmahon has entered the new financial year with a solid balance sheet, an order book worth $5b of work in hand, and a strong tender pipeline over the next few years. We remain focused on delivering to our clients a safe and reliable service, advancing our technology platform, and the continued expansion of our service offering across the mining value chain.”
Other key highlights included:
- Reducing injury rates (TRIFR) to 4.8 from 6.4 in FY21
- Executing project commencements at Dawson South and Warrawoona surface projects and King of the Hills surface and underground projects
- Telfer contract following re-negotiations in FY21 delivering improved performance
- Successful redeployment of Mt Morgans workforce and plant to other Macmahon projects following closure of Mt Morgans project by Dacian late in the year
The Board has declared a final dividend of 0.35 cents per share for the year ended June 30, 2022, bringing the total FY22 dividend payment to 0.65 cents per share, unchanged on FY21.
