CIMIC appoints Adolfo Valderas to replace Marcelino Fernandez Verdes as CEO

Adolfo Valderas will replace Marcelino Fernandez Verdes as CEO of CIMIC, which also lifted quarterly cash flow.

Rhiannon Hoyle

Outgoing CIMIC CEO Marcelino Fernandez Verdes.

less than 2 min read

10:56AMOctober 19, 2016

Dow Jones

Construction company and contract miner CIMIC Group has named Adolfo Valderas as its new chief executive, while also reporting an increase in quarterly cash flow.

CIMIC said Mr Valderas, currently deputy chief executive, would take the helm with Marcelino Fernández Verdes, currently CEO and executive chairman, to continue in the latter role.

“CIMIC Group’s solid financial position, our robust pipeline and the expertise of our people in delivering complex construction, mining, mineral and concessions projects provides us with a strong future of which I am proud to be a part,” Mr Valderas said.

Mr Valderas was one of the first executives sent to Australia by CIMIC’s Spanish parent, Grupo ACS, ahead of its March 2014 acquisition of Leighton Holdings, which it renamed CIMIC.

The company separately said it recorded cash flow of $532.9 million in the three months through September, up 7.3 per cent on-year.

It reiterated an earlier projection of $520 million-$580 million in net profit for 2016.

CIMIC announced a number of projects in the quarter that were expected to generate $1.14 billion in future revenue, including a tunnel in Hong Kong, an underground mine decline in Mongolia and coal handling and preparation plant works in Queensland.

Also, its subsidiary Thiess had established a joint venture to provide mining services to an oil sands project that could generate revenue of up to $430 million.

“Our strategy of exporting our skills is starting to pay off, with project wins in mining in North America and construction in Asia providing the most recent examples,” Mr Verdes said.

“Diversification, combined with our disciplined approach to risk management, is key to our focus on delivering sustained returns, enhancing our resilience and building our competitive position.”

Dow Jones, AAP