SINGAPORE (Feb 14): Civmec announced 2Q19 earnings fell 76.3% to A$1.26 million ($1.22 million) compared to A$5.31 million in 2Q18.

This brings 1H19 earnings to A$5.81 million, 24.0% lower than A$7.65 million in 1H18.

Revenue for 2Q19 declined 21% to A$134.9 million from A$170.7 million a year ago, due to projects completing in the period.

As cost of sales also dropped by 20.4% y-o-y to A$130.9 million, gross profit for 2Q19 came in at A$4.03 million, 36.2% lower than A$6.31 million in 2Q18.

Other income fell by 73.1% to A$1.66 million from A$6.18 million last year, primarily due to proceeds from an insurance claim received in the comparative period.

Finance costs increased by 37.1% y-o-y to A$1.19 million.

Cash and cash equivalents as at Dec 31, 2018, was A$69.1 million.

On the outlook, the group will continue its focus on fortifying its expanded service offering, including the successful delivery of ongoing maintenance contracts, and converting new opportunities. It also expects to secure further contracts in the remainder of the year.

CEO of Civmec Patrick Tallon says, “The tendering outlook remains positive and we will continue to leverage our established client relationships to capitalise on the growing opportunities across our operating sectors.”

Shares in Civmec closed 1.25% higher at 40 cents on Thursday.