Infrastructure and civil engineering firm CIMIC Group – formerly Leighton Holdings – announced it will appoint a new chief executive officer as it revealed a net profit after tax of $413.7 milllion in the first nine months of the 2016 calendar year.
CIMIC, which is currently targeting a half-billion-dollar takeover of UGL, is involved in the Gold Coast light rail extension and Cranbourne-Pakenham level crossing removal project through its subsidiary CPB Contractors (formerly Leighton Contractors), and is also shortlisted for the Melbourne Metro tunnel and the Sydney Metro tunnel under Sydney Harbour.
The company said on October 18 that deputy chief executive officer Adolfo Valderas would be elevated to the role of chief executive officer.
Marcelino Fernandez Verdes, the outgoing CEO, will remain on as executive chairman.
The announcement came a day before the firm announced a 5.9% increase in net profit after tax in the first nine months of the year, compared with the same period in 2015.
The $413.7 million NPAT was despite a 26.7% decline in revenue, year-on-year, to $7.64 billion.
Verdes praised the company’s EBITDA conversion rate and free cash flow generation.
“CIMIC generated a solid result with revenue growth accelerating in the third quarter and net profit after tax and margins increasing in the nine month period, year-on-year,” he said.
“The balance sheet also strengthened further, with net cash of approximately $770 million providing the flexibility to pursue future growth opportunities.”
Those opportunities, of course, include the potential acquisition of UGL, an engineering and services firm in which CIMIC already owns a 13.84% share.
CIMIC announced on October 10 it would target an off-market takeover of UGL at a price of $3.15 a share.
Of the new CEO, Verdes said he was pleased to announce Adolfo Valderas as his successor.
“Adolfo has played an integral part in CIMIC Group’s achievements during the past three years,” Verdes said, “first as chief operating officer and then as deputy chief executive officer.”
The newly-appointed Valderas, who takes over as CEO immediately, said it was a “privilege, and a great responsibility”.
“CIMIC Group’s solid financial position, our robust pipeline and the expertise of our people in delivering complex construction, mining, mineral and concessions projects provides us with a strong future of which I am proud to be a part.”
Valderas, a civil engineer, joined CIMIC after leaving his role as chairman and chief executive officer of Spanish engineering firm Iridium.