RE: Results day27 Apr 2023 08:42
Margins look tight, return to profit next year, hopefully share price starts to climb in the next few months as markets tend to forward looking, just need a couple more contracts to land. Suspect we’ll open in 50s today.
E&C has secured revenue of US$0.9 billion for 2023. Approximately half of this revenue comes from contracts with no future margin contribution. Furthermore, new awards secured in 2023 are not expected to contribute to margins until next year. Coupled with the adverse operating leverage due to the small portfolio of active contracts, we expect a small EBIT loss in E&C in 2023. Our healthy pipeline and projected order intake in 2023 mean that we remain confident of delivering a return to profitability and positive cash flow in 2024 and significant growth in E&C over the medium term.