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Sunday 24

February, 2019 8:11 AM



Downer swings to $134m first-half profit

Downer swings to $134m first-half profit

Engineering company Downer has bounced back and reported a first-half profit thanks to the NBN and new construction and mining projects.

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By AAP 07.02.2019 11:03 AM

Downer EDI has swung to a $134.2 million first-half profit, helped by continued revenue from construction of the NBN.

The engineering company, which posted an $11.1 million first-half loss this time last year, was boosted by a 27.5 per cent increase in revenue from the utilities business that includes NBN contracts and new renewable energy projects.

Total revenue rose 8.6 per cent to $6.6 billion for the six months to December 31.

Announcing the positive performance on Thursday, Downer raised its full-year guidance for net profit after tax and amortisation (NAPTA) to $352 million from $335 million.

The improved guidance came a day after the company secured a $900 million order from the NSW government for 17 Waratah Series 2 trains.

Increased activities on the Ichthys' gas field project in the Northern Territory helped lift first-half construction and maintenance revenue 34.1 per cent to $945.1 million.

Increased activities at Blackwater and Carrapateena mines also contributed to the improved performance.

Downer lifted its interim dividend one cent to 14 cents, half franked.

At 1100 AEDT, Downer shares were down 35 cents, or 4.63 per cent, at $7.21.

DOWNER'S FIRST-HALF PROFIT

* Net profit $134.2m vs $11.1m loss in pcp

* Revenue up 8.6pct to $6.6b

* Interim dividend up 1.0 cent to 14.0 cents, 50pct franked.

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