Macmahon says it will turns things around
Mining-focused engineer Macmahon Holdings says recent contract wins that have bolstered its order book to a record $3.1 billion and this shows it can turn its fortunes around.
The company has secured $1.4 billion in new work in the past four months, including the Tropicana gold project in Western Australia.
Tropicana is Macmahon's largest yet project and worth an estimated $900 million over 10 years.
Macmahon's net profit fell 97 per cent for the 12 months to June 30 from $37.9 million to just $1 million, due to a massive writedown on a rail contract with BHP Billiton.
However on Thursday, Macmahon chief executive Nick Bowen forecast a 2012 profit of more than $45 million, at the company's annual general meeting.
Other projects include building a coal mine in Mongolia with Germany's Operta group, which s valued at $500 million over the first five years.
Mr Bowen said Macmahon's performance had been hampered for the past three years because it was not winning enough work but it was well placed for infrastructure related to the mining boom and State government commitments.
"For a contractor it is critical that we continually build our order book so that we have transparency of our
future revenue streams," Mr Bowen said at the AGM.
"Overall, the outlook is very positive for Macmahon.
"The task now is to deliver on our promises to turn the order book into profits for our shareholders."
Macmahon shares fell once cent to 59 cents on Thursday.
The company has secured $1.4 billion in new work in the past four months, including the Tropicana gold project in Western Australia.
Tropicana is Macmahon's largest yet project and worth an estimated $900 million over 10 years.
Macmahon's net profit fell 97 per cent for the 12 months to June 30 from $37.9 million to just $1 million, due to a massive writedown on a rail contract with BHP Billiton.
However on Thursday, Macmahon chief executive Nick Bowen forecast a 2012 profit of more than $45 million, at the company's annual general meeting.
Other projects include building a coal mine in Mongolia with Germany's Operta group, which s valued at $500 million over the first five years.
Mr Bowen said Macmahon's performance had been hampered for the past three years because it was not winning enough work but it was well placed for infrastructure related to the mining boom and State government commitments.
"For a contractor it is critical that we continually build our order book so that we have transparency of our
future revenue streams," Mr Bowen said at the AGM.
"Overall, the outlook is very positive for Macmahon.
"The task now is to deliver on our promises to turn the order book into profits for our shareholders."
Macmahon shares fell once cent to 59 cents on Thursday.
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