In Ong’s view, the contracts also reflect Civmec’s close ties with global mining group Rio Tinto and Australian-headquartered mining group Fortescue.
Among the contract wins, the group secured a “significant package of works” for Rio Tinto’s Cape Lambert Port A facility. The A$600 million also includes the installation of civils and SMPE&I for Fortescue’s Christmas Creek Green Iron Project.
On July 8, Civmec also announced that a consortium it is part of, has been selected by the Western Australian (WA) government as the preferred bidder to plan and design the Perth Sporting and Entertainment Precinct Project. The consortium comprises Civmec, Seymour Whyte and Aurecon.
The alliance contract, which is subject to further approvals, could be extended to include the entire delivery of the overall sporting and entertainment precinct commencing in early 2026.
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“So far, we understand that Civmec has only recognised the value associated with the planning & design stage of the project in its order book,” says Ong.
Other positives include Civmec’s acquisition of Luerssen Australia, which was completed on July 2. The acquisition marks a “pivotal step” in the group’s long-term strategy to strengthen its position as a sovereign Australian shipbuilder, Ong adds.
“By assuming full ownership, the group is able to consolidate its role in the SEA1180 Offshore Patrol Vessel (OPV) programme, gaining direct control over program delivery, operational decision-making, and future capability development,” he explains. “This also enhances its ability to deliver end-to-end naval shipbuilding solutions, from design through to commissioning, and unlocks opportunities to drive production efficiencies, accelerate delivery schedules, and potentially secure future shipbuilding contracts.”
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While Ong expects Civmec to post a “weak” set of earnings for the 4QFY2025 ended June 31, he believes that the worst is over for the group.
The group is estimated to report a net profit of about A$8 million, 48% lower y-o-y and flat q-o-q. This is attributed to reduced activity arising from delays in the timing of key project awards.
“But with the latest contract wins and robust pipeline of tendering activities, the group’s outstanding orderbook should rebound back to above $1 billion, thus paving the way towards revenue/earnings recovery,” says Ong.
As at 10.49am, shares in Civmec are trading 5 cents higher or 5.35% up at 98.5 cents.
