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CIMIC HY profit climb lifts dividend 25pct

CIMIC Group has lifted its dividend 25 per cent after posting a half-year profit rise of 22 per cent to $323 million.

The construction and contract mining giant on Tuesday said revenue for the six months to June 2017 rose 28 per cent to $6.3 billion on the back of strong growth across all core businesses.

Chairman Marcelino Fernandez Verdes said CIMIC was able to increase its dividend to a fully franked 60 cents, from 48 cents for the previous corresponding period.

"Through continually evolving how we deliver projects, we are achieving favourable outcomes for clients which improves the position of our group to win further work," he said in a statement on Tuesday.

"We have also substantially increased our net cash position, which allows us to better reward shareholders and more efficiently allocate capital."

CIMIC also reaffirmed its full-year net profit guidance of between $640 million and $700 million for 2017, up 10 to 21 per cent on 2016.

Chief executive Adolfo Valderas said CIMIC's positive outlook was supported by its continued momentum and solid profit and cash flow performance from construction, mining and services.

"We are in an ideal position to build on our strategy of providing clients with end-to-end solutions - from financing to engineering, construction, mining, operations and maintenance," Mr Valderas said.

He added the company's future growth is backed by nearly $50 billion worth of tenders which are to be bid and or awarded in the remainder of 2017, as well as $320 billion of upcoming projects.


* Net profit up 22 pct to $323 million

* Revenue up 28 pct to $6.3 billion

* Final dividend up 18 cents to 60 cents, fully franked