Friday, February 15, 2013

Ausgroup

Ausgroup: 2Q13 revenue flat at A$151m, earnings declined 46% y/y to A$2.8m. EPS at 0.6¢ for 2Q13, vs 1.1¢ for 2Q12. Operating costs for 2Q13 increased 30.5% to A$5.8m, mainly due to additional costs associated with the new Queensland region, as well as the Subsea Pressure Controls business which was acquired in Dec 2011. Mgmt stated that the oil and gas, LNG, coal seam methane and iron ore mine development sectors continues to be positive. Sustained demand from its clients, particularly in the LNG sector over the next few years should continue. Ausgroup's total outstanding order book stands at A$308m as of 14 February 2013. As a comparison to Civmec's results, 1H13 saw Ausgroup's revenues up 11.8% y/y, vs Civmec's 103% increase; 1H13 saw Ausgroup's earnings up 10% y/y, vs Civmec's 52% increase; 1H13 Gross margins for Ausgroup is 12.0%, vs Civmec's 15.6%; 1H13 EBIT margins for Ausgroup is 4.7%,vs Civmec's 10.8% Ausgroup trades at 9.4x P/E vs its next closest peer Civmec at 20x. The discount on valuations that Ausgroup is trading at is a reflection on the mgmt quality/ execution, orders, and growth.

No comments:

Post a Comment