Record Q2 turnover for Brazil's Mills
By Maria Hadlow09 August 2012
Brazil's Mills Estruturas e Servicos de Engenharia has reported a record turnover for the second quarter of 2012 complemented by a record earnings growth of 73.5%, while planned investment more than doubles.
Growth is attributed to the continued activity and investment in infrastructure, house building and the World Cup - Mills is also trying to expand its share of the oil and gas sector.
Revenue for Q2 of 2012 was R$211.1million (~US$155 million) an increase of 28.7% over the same period in 2011. Net earnings of R$39.2 million (~US$20 million) for the quarter, represented an increase of 73.5%.
Mills investment budget for organic growth in 2012 has been revised from R$127 million to R$256 million (~US$ 128 million) to take advantage of the opportunities currently arising in the company's target markets.
Return on investment stands at 13.6% compared to 12.7% in 2011 and rental revenue showed a 7.3% quarter-on-quarter growth. Equipment rental represents 70.1% of Mills revenue.
Mills said that there is still a promising demand in Brazil from the heavy construction market and the PAC Growth Acceleration Programme, which incorporates the Minha Casa, Minha Vida house building programme, realised capital expenditure R$119 billion in the first half of 2012.
Further investment in infrastructure including participation of the private sector through new concessions for airports, railways and highways should start to appear in the second half of 2012.
In the oil and gas sector where Mills has ambitions of extending its market share it reports that the new business plan for Brazilain oil company, Petrobras, encompasses investments of US$ 236.5 billion in the 2012-2016 period, of which 56% in exploration and production in Brazil, aims to more than double production by 2020.