Australian engineering, construction, and remediation contractor Duratec (ASX:DUR) has delivered robust H1 FY23 results built on the solid results achieved in H2 FY22.
Duratec’s financial performance for H1 FY23 is supported by a strong orderbook, which currently has a work-on-hand position of $529 million.
Revenue for the period was $228.5 million, up 75% on the previous corresponding period (PCP), while normalised EBITDA of $16.2 million was up 222%, and NPAT of $7.8 million skyrocketed 981% on the PCP.
The company expects its FY23 revenue to be in the range of $420 million to $460 million, delivering a forecast EBITDA of up to $35 million.
The company’s mining and industrial division has had mixed results for H1 FY23. ‘Excellent’ contribution from the Goldfields was achieved, however the Northwest was impacted by delays in project award and Duratec maintaining operational capacity through this period.
The company reports that recent announcements and market updates, shows a strong future for this segment, supported by a robust orderbook. Duratec’s focus on annuity contracts with key strategic clients in recent years has strengthened the company’s revenue stream and its overall capability in the mining and industrial segment. Duratec is also experiencing greater client take up of its technical ECI contract modelling services, which it says will lead to long-term opportunities.
Commenting on the 1H FY23 results, Duratec Managing Director Phil says: “We are very pleased with the results achieved for 1H FY23, which shows our capacity and capability in execution of strong financial results. As the market moves to more normal operating conditions, we have been able to build on our solid H2 FY22 performance.
Pleasingly, Duratec’s orderbook remains solid, which is a real credit to the team and shows our ability to convert tangible opportunities into meaningful results. Duratec is well positioned for continued growth in the long term.”
“As the market moves to more normal operating conditions, we have been able to build on our solid H2 FY22 performance”
Duratec continues to build on its strong orderbook through its ability to efficiently capitalise on new opportunities through tenders, which remain stable at $654 million. The company says there remains a high level of enquiry into Duratec’s diverse range of services across all market segments and this continues to convert to orderbook strength.
A key business driver of Duratec’s growth is its ability to operate across a varied but targeted number of market segments and its ability to offer services from its geographically distributed support network. This diversification of market segments not only supports Duratec’s growth strategies, but also reduces Duratec’s exposure to market segment volatility.
Duratec is an Australian contractor providing assessment, protection, remediation, and refurbishment services to a broad range of assets and infrastructure.
Duratec’s multi-disciplined capabilities combine engineering experience with project delivery expertise and use a range of in-house assessment technologies, including 3D capture and modelling technology with predictive analysis tools. Headquartered in Wangara, Western Australia, Duratec has 15 branches around the country in capital cities and regional centres, delivering services across multiple sectors including Defence, Commercial Buildings & Facades, Infrastructure (Water, Transport & Marine), Mining & Industrial, Power and Energy.
Write to Adam Orlando at Mining.com.au
Images: Duratec Ltd
