Opus International first-half profit rises 6% on Canada contribution

Opus International Consultants New Zealand chief executive David Prentice
Opus International Consultants 12-month price history (NZX.com)

Opus International Consultants [NZX: OIC], the engineering firm, reported a 6 percent gain in first-half profit, reflecting the contribution from the Stewart Weir business acquired in 2013, which drove a jump in earnings in Canada.

Profit rose to $9.9 million in the six months ended June 30, from $9.4 million a year earlier, the Wellington-based company said in a statement. Revenue jumped 25 percent to $265 million million. The shares fell 6.6 percent to $1.70 after the results, which were just shy of First NZ Capital's profit forecast of $10 million.

Opus agreed to pay as much as C$90 million for engineering and environmental advisers Stewart Weir last year, including C$40 million of performance-based payments. The acquisition made Canada the company's second-biggest market after New Zealand, where Opus has one of four mandates to lead design the Christchurch rebuild.

Total revenue from North America, mainly Canada, climbed almost four-fold to $57 million, and earnings before interest and tax jumped 289 percent to $3 million, of which $2.3 million was the Stewart Weir contribution. The result includes a fair value gain on financial liabilities related to the Stewart Weir acquisition.

In New Zealand, revenue rose about 5 percent to $147.9 million while Ebit declined 5 percent to $11.2 million in what the company described as "variable market conditions."

"We retain a strong position in Christchurch and have secured significant new contracts such as the five-year Wellington Region Network Outcome contract for the NZ Transport Agency," chief executive David Prentice said.

Revenue in the UK climbed 41 percent and earnings rose 45 percent to $400,000, which Opus said reflected an improving UK economy, a long-term contract with the Hertfordshire County Council and a strong performance from contracts related to Network Rail.

In Australia, revenue fell 18 percent to $33 million, for an Ebit loss of $193,000, which it attributed to a general slowdown in the infrastructure and resource sectors."

The company will pay a first-half dividend of 4 cents a share, fully imputed.

(BusinessDesk)


Got a question about this story? Leave it in Comments & Questions below.

This article is tagged with the following keywords. Find out more about MyNBR Tags

NZ Market Snapshot

Forex

Sym Price Change
USD 0.7008 0.0006 0.09%
AUD 0.9190 0.0005 0.05%
EUR 0.6101 -0.0001 -0.02%
GBP 0.4795 0.0004 0.08%
HKD 5.4373 0.0092 0.17%
JPY 74.6030 0.2520 0.34%

Commods

Commodity Price Change Time
Gold Index 1292.7 26.930 2016-04-29T00:
Oil Brent 47.4 0.530 2016-04-29T00:
Oil Nymex 45.9 -0.080 2016-04-29T00:
Silver Index 17.8 0.269 2016-04-29T00:

Indices

Symbol Open High Last %
NZX 50 6820.6 6820.6 6820.6 -0.42%
NASDAQ 4805.8 4807.9 4805.3 -0.62%
DAX 10091.2 10148.7 10039.0 0.83%
DJI 17813.1 17814.8 17830.8 -0.32%
FTSE 6322.4 6322.4 6322.4 -1.27%
HKSE 21215.2 21235.4 21388.0 -1.50%
NI225 16357.1 16357.1 16666.0 -3.11%

Most listened to

What's the story behind the story? Our special feature audio offers a mix of comment from journalists, experts and panel discussions.
  1. Jason Paris on Lightbox, and avoiding the 'race to the bottom'
  2. The idea Hilary Barry’s resignation will result in boardroom bloodshed is arrant nonsense, says NBR’s Nick Grant
  3. The Icehouse’s Andy Hamilton says GIVs should attract American billionaires like Julian Robertson
  4. Nevil Gibson discusses the spiralling descent of the Venezuelan economy in his latest Editor’s Insight
  5. Rob Hosking on what to expect from this week's unemployment data