Opus International boosts profit 18%

Opus International boosts profit 18%

by Paul McBeth

Feb. 23 (BusinessDesk) – Opus International Consultants Ltd., the NZX-listed engineering firm, lifted its 2010 profit by 18% as the company took advantage of increased government infrastructure spending in several of the countries where it operates.

The Wellington-based company made a net profit of $22 million, or 15 cents per share, in the 12 months ended Dec. 31, up from $18.6 million, or 13 cents a share, a year earlier.

Revenue crept up 0.3% to $372.7 million, with Canada the only segment reporting lower sales in the year, while the cost-cutting in the U.K. shaved almost $8 million from its expenses.

“Our increased profitability reflected the focus on project delivery and the efforts of management and all employees to keep costs down,” said managing director David Prentice in a statement.

“The company also benefitted from government spending and economic stimulus initiatives in a number of markets, although this overall was slower than anticipated with some infrastructure programmes delayed.”

Transport Minister Steven Joyce has been pushing for substantial investment in New Zealand’s roading system since the National-led administration came to power in 2008, flagging $10.7 billion to be spent over a decade, with seven routes deemed to be projects of national significance.

Opus won part of the contract to complete the Waikato Expressway, one of the seven routes, last year, in eight local projects identified as secured or completed in 2010.

The engineering company expects its Canadian business to pick up this year after it acquired North American firm Dayton & Knight Ltd. for C$15 million. Opus will pay fully-imputed final dividend of 4.3 cents a share, taking the total payment to shareholders to 7.7 cents.

The shares fell 0.5% to $2.06 in trading today, and have gained 4.6% this year.

(BusinessDesk) 16:37:36

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