MACA defies resources slowdown
UPDATE 1.50pm: Mining contractor MACA has defied the oft-cited slowdown in the resources sector to post a 44 per cent jump in first-half profit to $32.6 million.
The result was achieved on a 47 per cent surge in first-half revenue to $304.6 million.
The figures allowed the contractor's board to declare an interim dividend of 6.5 cent a share, fully franked, up 44 per cent on the previous corresponding period.
MACA said it had an order book of $1.52 billion at the end of December and held cash and investments worth $1.52 billion.
The company attributed the strong result to its long-term contract profile with growing mining companies across a diversified range of commodities.
"MACA's earnings are closely aligned with quality mid-tier miners who have successfully transitioned from the construction phase to production and have further plans to grow which MACA has the capability and funding to support," the company said.
The company reaffirmed full-year revenue guidance of up to $550 million, despite the temporary suspension of operations at its client Regis Resources' mines at Garden Well and Rosemont because of flooding.
Managing director Doug Grewar said it was particularly pleasing to have delivered this outstanding result during a period in which many of the company's peers had forecast a deterioration in earnings.
"Another record half year of profitable growth is testimony to the sustainable business model that MACA has established and the passion of our people," he said.
MACA shares closed up 16 cents, or 6.53 per cent, at $2.61.
