Civmec

Civmec: 2Q13 Revenue up 35% y/y. Admin expenses increased 25%, offset by Finance Costs declining 30%. Forex Translation difference declined 125%, with the SGD appreciating on AUD over this period. Overall earnings increased 40% y/y, due to higher activity levels in both the Oil & Gas and Mining and Other segments. Outlook for the Oil and Gas sector in Australia remains strong and positive and the Group sees no evidence of reversal in current project commitments. The Group is confident of seeing sustained demand for its services over the next few years. 2013 saw both Civmec and Ausgroup winning $50m worth of contract orders. Civmec with 1 order, and Ausgroup with 3 separate smaller orders. Civmec total order book of $201m, trades at 19.9x, share price up 6.6% YTD; vs. Ausgroup total order book of A$280m, trades at 8.6x. share price up 18.6% YTD; As a similar read-through for Ausgroup's results, which will be out 19 Feb 2013.