Construction giant Leighton's profit grew by 24 per cent in the first quarter of 2014, driven by higher margins and strength in its infrastructure and oil and gas divisions.
The company has also stuck to its forecast of an underlying net profit of between $540 million and $620 million in the full year.
Leighton's 2013 underlying profit was $584 million.
Chief executive Marcelino Fernandez Verdes said Leighton's infrastructure and oil and gas construction divisions were strong performers in the three months to March 31, helping to lift net profit to $152 million.
Among $4.4 billion in new work secured by Leighton during the quarter was a $453 million contract to build the Wanchai bypass tunnel in Hong Kong, and a $1.9 billion joint venture contract to build a highway in Qatar.
The company's profit margin - a measure of the percentage of money it is earning from revenue - increased by half a per cent.
Work in hand was down three per cent to $40.9 billion, but was still substantial and enough to underpin profitability for the next few years, Mr Verdes said.
Gearing, which has long been too high and a problem for Leighton because of high debt, had improved to 38.5 per cent, from 47.2 per cent in the prior corresponding period.
Leighton shares climbed 35 cents, or 1.8 per cent, to close at $19.49.
Its quarterly update came as the company's owner, German contractor Hochtief, increased its stake from 61.1 per cent to 62.6 per cent, as it tries to secure more than 70 per cent of the group.
Leighton's board has recommended shareholders accept Hochtief's $1.2 billion, $22.50 a share offer, ahead of the May 9 deadline.
Hochtief is owned by Spain's ACF, where Mr Verdes is also chief executive.
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