Kwinana-based specialist fabricator and manufacturer, Ausclad Group, has posted an $8.2 million net profit for the half-year ending December 2006, providing a further boost for the company on the back of several recent lucrative contracts.
The figure, up from $3.5 million posted a year earlier, represents a rise of 133 per cent in net profit for Ausclad, which is listed on Singapore’s Sesdaq exchange.
Ausclad attributed its increased net profit to revenue growth of 20 per cent and higher valued work undertaken during the period, during which the company’s net profit margin rose from 3.4 per cent to 6.5 per cent. A positive cash flow from opera-tions, of $7.6 million, was also recorded.
The group has benefited from its acquisition of Singapore-based Cactus Engineering, a specialist machining and fabrication company servicing the oil and gas industry, in July 2006 for $12.7 million.
Cactus is currently involved in fabrication and machining on sub-sea oil production systems, which are in high demand due to increased production activity in the sector.
Ausclad managing director Stuart Kenny flagged the possibility of further expansion using Singapore as a base, and said revenue from Cactus could match the group’s Australian operations in the future.
Cactus contributed $9.6 million, or 7.6 per cent of the group’s total $126.1 million revenue during the period.
Last month, Ausclad announced that its current order book for Australian operations was $214 million, with two contracts worth $72.7 million secured in the same month.
The projects involve the installation of an iron ore process plant for US engineering and construction firm, Kellogg Brown & Root, and further work for CSBP’s ammonium nitrate plant in Perth.
These contracts follow the company’s announcement, in November last year, of three new contracts worth $32 million, involving Fortescue Metals Group’s Pilbara iron ore project, Alinta’s Wagerup refinery and Anaconda Nickel’s Murrin Murrin nickel project.
The group also secured a three-year preferred contractor agreement with Alinta Energy in January.
