Sydney, Feb 25, 2008 (ABN Newswire) - Transfield Services (TSE) posted a 90% increase in half year net profit, propelling shares in the engineering services company as much as 18% higher.

The market's reaction suggests the first half profit comfortably exceeded market expectations.
Shares eased slightly to close at $11.10.

Transfield services reported net profit after tax of $41.2 million for the half year ended 31 December 2007 compared to $21.7 million on the prior corresponding period. That's a 90% increase.

It said the result was achieved on total revenue of $1.4 billion, which represents an increase of 35.8% on the prior comparable period.

"Organic growth and increased margins have delivered record results, and a bumper order book is already driving us towards what is always a stronger result for us in the second half," managing director Peter Watson said.

The company, which has operations in Australia, New Zealand, North America, South East Asia and the Gulf Region said every single area of the businesses reported growth this half.

"And we will continue to leverage our core strengths to create sustainable global growth, particularly in the high growth areas of expert project management services and sustaining capital works.

 "The Australian and New Zealand businesses enjoyed strong profit growth during the period of 36.6% and 22.36% respectively," Transfield said.

North America's revenue has increased by 168.4% on the prior period and now stands at $373.6 million. The group said the North American oil and gas business continues to grow.

Gulf Region, India and Asia also increased by 55.4% to $30.3 million.

Transfield Services entered the South American market in January with the acquisition of 50% of mining services companies Instrumentacion Y Servicios S.A and its subsidiary Ingenieria Ambiental Y Servicios S.A.

Revenue from continuing operations increased to $1.39 billion from $1.03 billion the previous corresponding period.

Revenue from Australia contributed $801.4 million to the figure.

The board declared a fully franked dividend of 18 cents per share to be paid on 18 April 2008, an increase of 35.8% on the prior comparable period.

 

 


 

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