Maintenance and asset management firm Transfield Services has returned to profit and expects its positive momentum to continue.
Transfield made a net profit of $53 million in the year to June 30, up from a loss of $255 million in the prior year, when it took a $309 million impairment charge on some assets.
Revenue and earnings rose in the 2013/14 year, driven by new contract wins in the company's defence, social, property and telecommunications operations.
But volumes fell in the mining, industrial and petrochemicals sector.
Shares in Transfield rose, adding 34 cents, or 24.1 per cent, to $1.75.
The company said it expects the positive momentum from the second half of 2013/14 to continue into 2014/15, given extensions and expansions to its contracts, the return of volumes in the telecommunications sector, and its additional capacity in the oil and gas sector.
It has forecast underlying earnings before interest, tax, depreciation and amortisation (EBITDA) of between $240 million and $260 million in the current financial year.
It achieved underlying EBITDA of $217 million in 2013/14.
The year just passed was one of consolidation, it said.
Transfield has cut staff and sold non-core assets in moves to simplify its portfolio of businesses.
Its core infrastructure business in Australia and New Zealand, which generated 63 per cent of overall revenue in 2013/14, delivered 23 per cent growth in underlying earnings.
"Importantly, we've also made good progress in strengthening our balance sheet," Chief executive Graeme Hunt said.
"This remains a prime focus for us."
TRANSFIELD RETURNS TO PROFITABILITY
* Full year net profit of $52.8m, up from $254.5m loss in 2012/13
* Operating revenue of $3.73b, up two pct from $3.67b
* No final dividend, unchanged
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