Civmec

Civmec: 3QFYJun13 results. Net profit is down 13.7% yoy at $8.5m, but would have been flat after adjusting for a one-off $1.4m net interest write-back in the prior y/y period. Revenue declined 10% yoy to $87.1m as some projects approached completion, delivering lower income streams. For 9MFY13, earnings rose 22% to $26.8m, driven by a 52% jump in revenue to $326.5m on higher activity levels in both the oil & gas and other segments. Order book stood at $151m with tendering activities at its highest since inception. Management continues to see strong outlook for the Oil and Gas sector in Australia and for the group; sees no evidence of reversal in its current project commitments. Notwithstanding the slower growth in the Mining and Resources sector, mgt still observes a significant increase in tendering activities. Expects to remain profitable for FY13. Civmec trades at 14.4x annualized 9MFY13 P/E, 4.5x P/B. This compares with closest peer Ausgroup at 7.6x P/E, 1.1x P/B.