Contractor CIMIC Group’s executive chairman Marcelino Fernándo Verdes has cited the company’s strong financial position in multiple company areas, including mining, as it moves into 2018.
“The future is promising for our company,” he said in a speech prior to the AGM in Sydney. “Good economic prospects in Australia, Asia and beyond are sustaining demand for infrastructure spending and providing a positive outlook for commodities.”
CIMIC’s net profits after tax were $702 million in 2017, 21 per cent higher than 2016 and at the top end of the company’s guidance range. Its 2018 guidance predicts a net profit after tax of $720–$780 million, subject to market conditions, according to CIMIC chief executive officer and managing director Michael Wright.
“All up, we have a broad range of opportunities in our markets,” he said at the AGM opening address. “At the beginning of the year we identified more than $110 billion of tenders relevant to us in 2018 and a further $285 billion of projects coming to the market in 2019 and beyond.”
Fernándo Verdes was enthusiastic about the mining arm of CIMIC’s business, which continues to forecast strong growth in 2018, with Australian export volumes expected to increase over the year.
CIMIC’s mining subsidiaries Thiess and Sedgman were cited by the chairman as “well positioned” to deliver on their projects, particularly overseas opportunities.
“Economic growth outside of Australia […] provides a positive outlook for mining and minerals processing in Australia, Asia and beyond,” he said. “Thiess and Sedgman will capitalise on opportunities in these markets.
“In more than 20 countries, [our workers are] delivering the essential infrastructure, serviced and mining solutions that our communities and clients need.”
Apart from the financial side of CIMIC’s mining interests, the chairman also stressed the company’s “strong safety focused culture” — reporting zero fatalities in 2017 and an improvement in total recordable injury frequency rates — as well as its “industry best” sustainability.