Leighton Profit up 63% to $450 Million”
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14 August 2007 Company Announcements Office Australian Stock Exchange Limited Level 4 20 Bridge Street SYDNEY NSW 2000 Dear Sir, Please find attached copies of the following documents: (a) Media Release dated 14 August 2007 entitled “Leighton profit up 63% to $450 million”. (b) Quarterly Update to June 2007. (c) Preliminary Final Report – Appendix 4E for the year ended 30 June 2007. (d) Media Release dated 14 August 2007 entitled “Leighton keeps its King until June 2010”. (e) Media Release dated 14 August 2007 to be issued by Leighton International Limited, a wholly owned subsidiary of the Company, entitled “Leighton named preferred contractor on US$550 million highway in Abu Dhabi”. Yours faithfully LEIGHTON HOLDINGS LIMITED ASHLEY MOIR Company Secretary For personal use only Media Release 14 August 2007 Leighton profit up 63% to $450 million The directors of Leighton Holdings Limited today announced a 63% increase in operating profit after tax and minorities to $450.0m (versus $276.1m last year) from a pre-tax profit of $584.1m. The return on shareholders’ funds averaged 36.7% for the year (27.7% last year). A final dividend of 65 cents per share, franked to 50%, was also announced by the directors bringing the full year ordinary dividend to a total 110 cents per share (up 67% from 66 cents per share last year). Chief Executive, Mr Wal King, said that he was delighted to report such a strong profit result for the year which was driven by the Leighton Group’s diversity and momentum. “The Group’s outstanding result reflected strong contributions from a number of large construction projects in Australia, another record property development performance and the continued strength of the market for contract mining of iron ore and coal,” said Mr King. “Total revenue, including joint ventures, was up 19% to $11.9bn ($10.0bn last year) while revenue from joint ventures increased by 24% to $1.9bn. Principal revenue sources were engineering and infrastructure $4.9bn (up 16%), mining and resources $3.4bn (up 30%), building and property $1.7bn (down 7%), and services $1.9bn (up 39%). “Work in hand has increased to a record $21.1bn compared with $16.0bn last year, boosted by the award of a number of major new projects and some significant contract mining extensions. “Major new projects include the $2bn North South Bypass Tunnel joint venture (JV) and $1.4bn Gateway Upgrade JV, both in Brisbane, the $1 billion Gold Coast Desalination Project alliance in Qld, the $522m Perth-Bunbury Highway alliance in WA, $790m of mining work at Prominent Hill in SA and a JV management contract for the US$2.1bn City of Dreams gaming and entertainment resort in Macau. “In the six weeks since 30 June, approximately $3bn worth of work has been awarded including the $1bn Sydney Desalination Plant, a $300m sewerage project in Melbourne, a $500m coal mining contract at Sonoma in Qld and a $345m extension at the South Walker Creek coal mine, also in Qld,” said Mr King. “The outlook for the Group remains very strong for all major markets, which are continuing to provide a good level of opportunities in construction, mining and services. These opportunities will continue to support work in hand which should be able to maintained around $20bn over For personal use only the next year. “After decades of underinvestment in roads, rail, water, electricity and telecommunications, a sustained catch-up spend is occurring and this is reflected in the current spending on engineering projects. Major infrastructure projects likely to come to the market or be awarded over the next year include the $3bn Airport Link tollroad and $2.3bn Goodna Bypass in Brisbane, and desalination plants worth more than a $1bn each in WA and Vic,” said Mr King. Page 1 of 2 Media Release 14 August 2007 (continued…) “Sustained investment in new mines and resources related infrastructure is providing a significant level of construction and process engineering opportunities for the Group, which in turn will lead to new supply. Export volumes should therefore be much stronger supporting the long term outlook for contract mining, particularly of iron ore and coal,” he said. “The non-residential property market is forecast to peak in terms of activity levels in 2007/08 after reaching an all time high in the last year. Leighton Properties’ portfolio of developments and a number of social infrastructure projects, including new hospitals should maintain the Group’s level of building work. “Asia is forecast to continue growing strongly and the Group is leveraged both directly – undertaking mining and construction work across the region – and indirectly – providing services such as contract mining to companies selling commodities into Asia. Indonesia will be maintained by a good level of resources related work and Hong Kong/Macau’s activity levels should be supported by existing building and infrastructure work,” said Mr King. “India offers a number of exciting prospects and there are good opportunities in toll roads, airports, oil and gas, building, and in the longer term contract mining,” said Mr King. “The Gulf is a region of vast opportunity. Leighton International has been named as preferred tenderer to construct a US$550m highway on Saadiyat Island, where some US$27bn will be spent creating Abu Dhabi’s flagship development. This project, and existing work in Qatar and Dubai, will support activity levels and provide a base to pursue other opportunities. “The balance sheet remains very strong with total assets of $4.7bn and net cash of $669m. This strength will continue to be used to pursue growth opportunities including acquisitons to further diversify the business,” he said. “The Group’s work in hand provides great momentum and revenue for the full year is forecast to be approximately $13.5bn. This momentum means that we expect our 2008 profit to be up by at least 20% on this year’s record result of $450m,” said Mr King. ENDS Issued by Leighton Holdings Limited ABN 57 004 482 982 www.leighton.com.au Further information: MR WAL KING AO Chief Executive Officer T (02) 9925 6912 or For personal use only MR SCOTT CHARLTON Chief Financial Officer T (02) 9925 6935 LEIGHTON HOLDINGS LIMITED is the parent company of Australia’s largest project development and contracting group. Founded in 1949, the organisation has grown into a diversified group that includes Thiess, John Holland, Leighton Contractors, Leighton Asia, Leighton International and Leighton Properties. With over 27,000 employees, the Group’s operations are spread all around the Asia-Pacific region on projects in Australia, New Zealand, Hong Kong, Indonesia, Malaysia, Singapore, the Philippines, Thailand, Vietnam, China, Taiwan, Sri Lanka, Macau, India and the Arabian Gulf. Leighton Group companies offer a broad range of project development and contracting services and skills to public and private sector clients across a wide range of industries. Project development skills – infrastructure, property or resources based – and project management of construction and property developments complement the Group’s contracting activities. These activities include construction, mining and services. Leighton Holdings (LEI) is listed on the Australian Stock Exchange and has its head office in Sydney. Page 2 of 2 JUNE QUARTERLY UPDATE & PRELIMINARY FINAL REPORT TO 30 JUNE 2007 / ISSUED 14 AUGUST 2007 For personal use only LEIGHTON HOLDINGS LIMITED ABN 57 004 482 982 07 LEIGHTON JUNE QUARTERLY UPDATE & PRELIMINARY FINAL REPORT TO 30 JUNE 2007 / ISSUED 14 AUGUST 2007 For more information please contact: Wal King AO Chief Executive Officer Scott Charlton Chief Financial Officer For personal use only Leighton Holdings Limited A.B.N 57 004 482 982 Level 5, 472 Pacific Highway St Leonards NSW 2065 Australia www.leighton.com.au T (02) 9925 6666 F (02) 9925 6005 Financial Highlights 30 June 2007 30 June 2006 % $'000 $'000 Change Revenue - Group 9,967,040 8,502,577 17.2% - Joint Ventures 1,880,197 1,513,889 24.2% Other Revenue 44,252 17,128 158.4% Total Revenue 11,891,489 10,033,594 18.5% New Contracts, Extensions & Variations 16,664,564 10,220,742 63.0% Value of Work in Hand # 21,084,802 16,038,367 31.5% Profit before tax 584,096 371,153 57.4% Income Tax (128,860) (93,764) 37.4% Minorities (5,194) (1,320) 293.5% Profit after tax 450,042 276,069 63.0% Earnings per Ordinary Share 162.3¢ 100.2¢ 62.0% Dividends per Ordinary Share 110.0¢ 66¢ 66.7% Total Capital and Reserves * 1,350,473 1,102,901 22.4% Total Assets 4,745,202 3,803,288 24.8% Cash net of Borrowings 669,262 618,251 8.3% Undrawn Facilities and Guarantees 740,512 810,715 (8.7%) * Excludes minority interests # Includes the Group’s share of Joint Ventures Key Performance Indicators for the 12 month period to 30 June 600 50 0.0 14 , 0 0 0 24,000 12 , 0 0 0 500 20,000 400.0 10 , 0 0 0 400 16 , 0 0 0 300.0 8,000 300 12 , 0 0 0 ' 6,000 200.0 200 8,000 4,000 10 0 . 0 10 0 4,000 2,000 0 0.0 0 0 02/3 03/4 04/5 05/6 06/7 02/3 03/4 04/5 05/6 06/7 02/3 03/4 04/5 05/6 06/7 02/3 03/4 04/5 05/6 06/7 For personal use only $M $M $M $M Operating Profit Profit After Tax Total Revenue# Work in Hand# Before Tax and and Minorities Minorities # Includes the Group’s share of Joint Ventures Leighton Holdings Limited JUNE 2007 QUARTERLY UPDATE Page 2 June Quarterly Update Financial Performance Bunbury Highway in Western Australia and a management contract at the City of Dreams casino in The directors are pleased to report that Group profit Macau.