CIVMEC LIMITED — Earnings Release 2022

May 11, 2022

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Civmec Delivers a Strong Performance for 9M FY2022

PERTH, SINGAPORE 11[th] May 2022 – Civmec Limited (“ Civmec” or the “ Group” ) is pleased to release details of the strong financial results for Q3 FY22 and 9M FY22 and to give a general corporate and operational update relevant to the Group.

The Group had yet another solid quarter in Q3 FY2022 across all operating sectors.

Highlights

• An 18.9% growth in revenues and consistent EBITDA margins over multiple quarters.

• A substantial increase in net profit after tax (NPAT) of 44.9% for 9M FY2022 compared to 9M FY2021.

• NPAT for the 9M of FY2022 already exceeds the NPAT achieved for the full year of FY2021.

• The outlook for the remaining quarter of FY2022 and into FY2023 remains strong, underpinned by an order book of approximately A$1.07 billion as at the end of March.

Key Financial Metrics (unaudited)

	Q3	Q3		9M	9M
	FY2022	FY2021	+ / (-)	FY2022	FY2021	+ / (-)
	A$’000	A$’000	%	A$’000	A$’000	%
Sales revenue	192,900	183,900	4.9%	582,253	489,600	18.9%
Gross profit	22,964	19,237	19.4%	65,173	53,755	21.2%
EBITDA	22,976	19,415	18.3%	66,232	53,720	23.3%
EBITDA Margin	11.9%	10.6%	1.3 pp	11.4%	11.0%	0.4 pp
NPAT	12,140	8,944	35.7%	34,734	23,965	44.9%
NPAT Margin	6.3%	4.9%	1.4 pp	6.0%	4.9%	1.1 pp
Earnings per share
attributable to equityholders of the Company	2.42	1.81	33.7%	6.92	4.81	43.9%
(cents per share)
Order Book				1,067,000	1,105,000

*pp = percentage points

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Commonwealth commitment to Defence Infrastructure development : Henderson Dry Dock

In March the Australia Government announced a A$4.3 billion investment to develop a large vessel dry dock and significant associated infrastructure in Henderson Western Australia. This dock will be constructed on the common user facility, the area of land directly adjacent to Civmec’s Henderson facilities.

This is an integral requirement to enhance the Commonwealth’s need to allow sovereign shipbuilding and sustainment capacity develop. It will provide an alternative to the only other naval assigned dry dock that is located in New South Wales, which will require upgrades later this decade. As announced, the Henderson dry dock will enable the construction and sustainment of large naval vessels in Western Australia. Government-owned Australian Naval Infrastructure will oversee the design and build, with work to start in 2023 and initial operations to commence in 2028.

This is a positive development for Civmec on many fronts:

• In the short to medium term there will be potential opportunities for us to be involved in the construction of the dry dock and associated infrastructure itself.

• In the long term, opportunities for more and larger vessels to be built and sustained within the Henderson infrastructure opens up an abundance of new possibilities for the company’s defence and infrastructure sector once the dock is complete.

Recent Contract Wins and Contract Extensions Across Multiple Operating Sectors

In the quarter, the Group has received multiple contract awards and contract extensions totaling A$110 million, maintaining the orderbook above $1 billion. These awards are across all sectors we operate supporting our manufacturing facilities, construction sites and maintenance activities on client sites. Awards also include our first contracts to be directly serviced from our newly established presence in Port Hedland.

COVID-19 Update

The impact of the pandemic on the Group’s operations has so far been controlled. The recent peak in infections in Western Australia has caused some disruption to site activities but has had minimal impact on activities in our Henderson facilities. This positive outcome is a testament to the successful rollout of our internally developed application to allow employees and on-site contractors to effectively monitor and report any close contacts they may have at work, thereby keeping more people actively working.

With the opening of borders to Western Australia for domestic and international travel we are seeing and improvement in labour availability to service our construction contracts in Western Australia.

Tendering

Tendering activity remains strong across all sectors and the Group is focused on securing projects that will allow it to grow the workforce at a sustainable pace. Recent contract awards have again allowed us to maintain our orderbook at over A$1 billion as we approach the end of FY2022 and head into FY2023.

This announcement is authorised for release to the SGX and ASX by Civmec’s Board of Directors.

*** End of Release** *****

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About Civmec Limited

Civmec is an integrated, multi-disciplinary construction and engineering services provider to the Oil & Gas, Metals & Minerals, Infrastructure and Marine & Defence sectors. Headquartered in Henderson, Western Australia, Civmec has regional offices in Newcastle (New South Wales, Australia), Gladstone (Queensland, Australia), and Port Hedland (Western Australia). The company is listed on the SGX (Singapore) and the ASX (Australia). Its core capabilities include heavy engineering, shipbuilding, modularisation, SMP (structural, mechanical, piping), EIC (electrical, instrumentation and control), precast concrete, site civil works, industrial insulation, maintenance, surface treatment, refractory and access solutions.

For more information, please visit our website at www.civmec.com.au.

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