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Stefanutti supported by mining work
Stefanutti supported by mining work. With limited public-sector infrastructure work available, the construction group has done well from increased mining sector work.
A recovery in mining activity has helped prop up Stefanutti Stocks in a tight market. The construction group says the number of tender enquiries and awards received from the mining sector has increased, while limited infrastructure work has been secured from the public sector.
Reporting interim results yesterday, Stefanutti said revenue from its Construction & Mining division rose 17% to R2.8 billion in the six months to end-August and now accounts for more than half of group revenue. That helped counter a 26% decline in Building revenue to R1.7 billion, while revenue from its Mechanical & Engineering division improved by 7.4% to R581 million.
Group revenue declined 1.1% to R5.1 billion and earnings before interest, tax, depreciation and amortisation (EBITDA) rose 20% to R241 million. Attributable earnings more than doubled to R223 million while diluted headline earnings per share increased by 43% to 53.97c per share. Earnings were boosted by a R38 million contribution from its business in the United Arab Emirates, up from R16 million. Like last year, it hasn't declared an interim dividend.
Its order book declined by 10.5% to R12.8 billion.
The group said short-term opportunities in the local market included surface mining related services, selected open pit mining contracts, urban developments, petrochemical tank farms, smaller oil and gas projects, pipelines, water and sanitation treatment plants as well as warehouses and some design and construct opportunities in the building sector.
As has already been widely reported, the South African construction market remains at a historic low," Stefanutti said. "Uncertainty exists with respect to the recently announced Government Stimulus Package. Depending on the detail relating to its implementation, this could create opportunities for various divisions within the group."
Its shares closed 7% higher at R3.20.
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By INCE|Connect NewsStefanutti supported by mining work. With limited public-sector infrastructure work available, the construction group has done well from increased mining sector work.
A recovery in mining activity has helped prop up Stefanutti Stocks in a tight market. The construction group says the number of tender enquiries and awards received from the mining sector has increased, while limited infrastructure work has been secured from the public sector.
Reporting interim results yesterday, Stefanutti said revenue from its Construction & Mining division rose 17% to R2.8 billion in the six months to end-August and now accounts for more than half of group revenue. That helped counter a 26% decline in Building revenue to R1.7 billion, while revenue from its Mechanical & Engineering division improved by 7.4% to R581 million.
Group revenue declined 1.1% to R5.1 billion and earnings before interest, tax, depreciation and amortisation (EBITDA) rose 20% to R241 million. Attributable earnings more than doubled to R223 million while diluted headline earnings per share increased by 43% to 53.97c per share. Earnings were boosted by a R38 million contribution from its business in the United Arab Emirates, up from R16 million. Like last year, it hasn't declared an interim dividend.
Its order book declined by 10.5% to R12.8 billion.
The group said short-term opportunities in the local market included surface mining related services, selected open pit mining contracts, urban developments, petrochemical tank farms, smaller oil and gas projects, pipelines, water and sanitation treatment plants as well as warehouses and some design and construct opportunities in the building sector.
As has already been widely reported, the South African construction market remains at a historic low," Stefanutti said. "Uncertainty exists with respect to the recently announced Government Stimulus Package. Depending on the detail relating to its implementation, this could create opportunities for various divisions within the group."
Its shares closed 7% higher at R3.20.