CONSTRUCTION and engineering contractor CIMIC (ASX: CIM) has reported a 22 per cent rise in half-year profit to $323 million and it has lifted its dividend 25 per cent with the extra cash in its coffers.
CIMIC also reported revenue for the six months to June 2017 rose 28 per cent to $6.3 billion on the back of strong growth across all core businesses.
Chairman Marcelino Fernandez Verdes says CIMIC will increase its dividend to a fully franked 60 cents, up from 48 cents for the previous corresponding period.
"Through continually evolving how we deliver projects, we are achieving favourable outcomes for clients which improves the position of our group to win further work," he says.
"We have also substantially increased our net cash position, which allows us to better reward shareholders and more efficiently allocate capital."
CIMIC, which is majority owned by Germany's Hochtief which in turn is controlled by Spain's Actividades de Construccion y Servicios, also reaffirmed its full-year net profit guidance of between $640 million and $700 million for 2017, up between 10 to 21 per cent on 2016.
Chief executive Adolfo Valderas said CIMIC's positive outlook was supported by its continued momentum and solid profit and cash flow performance from construction, mining and services.
"We are in an ideal position to build on our strategy of providing clients with end-to-end solutions - from financing to engineering, construction, mining, operations and maintenance," Mr Valderas said.
He added the company's future growth is backed by nearly $50 billion worth of tenders which are to be bid and or awarded in the remainder of 2017, as well as $320 billion of upcoming projects.
Business News Australia
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