Decmil Australia
Decmil Australia
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Australian engineering and construction group Decmil has generated its first positive net operating cashflow since FY19 despite posting a NLAT blowout to $A103M for the year to end-June, out from its $2M loss in the previous year.
FY22 revenue grew to $378M (FY21: $304M) before a balance sheet reset announced last month saw EBITDA plunge to negative $44M (-$2M).
Decmil says net operating cashflow was $6M, a turnaround from its $22M outflow in FY21.
No-one is releasing details, but Australian civil construction group Decmil and specialist services contractor Southern Cross Electrical Engineering have settled their dispute over a subcontract on construction of non-processing facilities at Rio Tinto’s Amrun bauxite project in Qld.
Their original 2017 contract was for $A6M, but SCEE was seeking $10.5M compensation for claimed delays, disruption and works beyond the original scope.
Australian engineering and construction company Decmil is building a greater presence in the growing lithium mining and processing sector with the award of two new contracts worth a combined $A34M.
Decmil will design and construct non-process infrastructure at Kwinana near Perth including administration and control centre, laboratory and workshop, warehouse, refuelling facility and wastewater treatment for the Covalent Lithium JV of Wesfarmers and Sociedad Química y Minera de Chile.
Losses on non-process infrastructure works at Rio Tinto’s Mesa A iron ore project have been blamed in part for West Australian engineering and construction company Decmil announcing a further reduction in forecast revenue for the year to June 2022.
After lowering its revenue prediction from $A500M to $470M in its half-year report published in February, Decmil says it now expects FY22 revenue of $425-450M and lowered EBITDA guidance to negative $10-15M.
Australian engineering/construction group Decmil has secured another major contract with Rio Tinto, awarded a $A30M contract to design and construct facilities for heavy and light vehicles at its Mesa J iron ore mine in the WA Pilbara.
The contract is Decmil’s second significant recent award by Rio’s 53%-owned Robe River JV with Mitsui Iron Ore Development, following the $8.7M D&C laboratory contract at the Mesa A mine last month.
Rio Tinto has awarded an $A8.7M contract to engineering and construction contractor Decmil to design and build a laboratory at its Mesa A iron ore mine in Western Australia’s Pilbara region.
Decmil is set to begin on-site work in March 2021, with completion due in August.
Rio Tinto holds 53% as operator of the Robe River JV, comprising the Mesa A and Mesa J mines, alongside Mitsui Iron Ore Development 33% and Nippon Steel 14%.
Australian engineering and construction contractor Decmil has been awarded a non-mining process infrastructure works contract worth about $A41M at Fortescue Metals Group’s Iron Bridge magnetite project in the WA Pilbara region.
Decmil will start work this month on design and construction of a bulk fuel storage and transfer facility, mobile maintenance complex including workshops, warehouses and related satellite office and site services facilities for the $US2.6B processing development 145km S of Port Hedland.
Write-downs totalling $A85M including disputed contracts have pushed Australian civil engineering and construction company Decmil to a statutory NLAT of $140M for the June year (FY20), from its previous year profit of $14M, on revenue of $451M (FY19: $551M).
Since restructuring its operations to exit under-performing operations and focus on engineering, construction and maintenance sources for the infrastructure, transport, resources and energy sectors, Decmil has secured/gained preference on $450M in new contracts and extensions.
Australian electrical and instrumentation services contractor Southern Cross Electrical Engineering says it will persevere with a $A10.5M claim plus interest, tax and costs against civil construction company Decmil over excess costs on the construction of non-processing facilities at Rio Tinto’s Amrun bauxite project in Qld.
The developer of Australia’s 10Mtpa Carmichael thermal coal mine, Adani Mining, has awarded two contracts worth over $A41.4M to construction and engineering contractor Decmil for the 200km narrow gauge railway that will connect the mine to existing rail infrastructure.
Decmil has won the $40M+ design and construct contract for three temporary 400-bed accommodation camps along the rail corridor in Qld’s Galilee Basin.