No CIMIC interim dividend after first-half hit to revenue and profit from coronavirus crisis

The company’s first-half revenue falls 9.2pc compared with first six months of 2019 as pipeline slows.

CIMIC said that, although most of its operations were classified as “essential services” and its core business continued unabated by government-imposed lockdown, the global pandemic had slowed its pipeline of new contract wins.

Contracting giant CIMIC has elected not to pay an interim dividend for the first half of 2020 after taking a first-half hit to revenue and profits on the back of the coronavirus crisis.

CIMIC suspended its final dividend for 2019 when it delivered its annual financial statements in February, and continued the trend on Thursday, saying it would not pay an interim dividend on its first half results either. The company paid shareholders out 71c a share this time in 2019.

The company’s first half revenue fell 9.2 per cent compared to the first six months of 2019, to $7.4bn, and CIMIC booked a first-half net profit of $316.6m, down from $366.7m in the previous corresponding period.

CIMIC said that, although most of its operations were classified as “essential services” and its core business continued unabated by government-imposed lockdown, the global pandemic had slowed its pipeline of new contract wins.

“COVID-19 led to a temporary delay in the award of new projects and slow down of revenues across our activities, both domestic and overseas,” the company said.

“Notwithstanding the impact from the evolving COVID-19 situation, the outlook across all of CIMIC’s core markets remains positive.”

Revenue from the company’s construction division fell 12.1 per cent to $3.2bn in the first half of the year, with its mining services division down 4.6 per cent to $1.96bn and services offerings off 17.c per cent to $1bn.

CIMIC announced plans on Wednesday to sell half of its mining services arm to Elliott Partners, and said on Thursday the division booked a strong 11.3 per cent lift in profits, to $262m, despite the revenue fall.

Profit from its construction division fell 24.7 per cent to $202.5m.

CIMIC shares closed down 3 per cent on Thursday at $21.74.