In morning trade the CIMIC Group Ltd (ASX: CIM) share price is storming higher following the release of its third quarter update.
At the time of writing the engineering company's shares are up 6% to $21.50.
How did CIMIC perform in the third quarter?
For the nine months ended 30 September, CIMIC reported a 13% decline in revenue to $9.3 billion and a 17.3% reduction in net profit after tax to $474 million.
However, after COVID-19 led to a slowdown of revenues across both domestic and international operations in the first half, CIMIC returned to form in the third quarter. It recorded an 8% increase in quarterly revenue compared to the second quarter.
Pleasingly, there could be more of the same in the quarters that follow. Despite the near term challenges posed by the pandemic, CIMIC won some major new contracts worth $1.4 billion during the third quarter.
And looking further ahead, the company has work in hand of $35.5 billion, which is the equivalent to more than two years of revenue. It also advised that its pipeline remains strong and its outlook is positive across its core businesses.
Trading update.
CIMIC's Executive Chairman, Marcelino Fernández Verdes, advised that the company is experiencing improved operating conditions at present.
He said: "We are seeing improved operating conditions, which is providing momentum as we enter the last quarter of the year. Governments have announced numerous stimulus packages in our core construction and services markets, with additional opportunities through the strong PPP pipeline, and the mining market is proving resilient."
"Looking ahead, infrastructure investment will be a valuable contributor to the economic recovery from COVID-19 and we are encouraged by the substantial investment programs in the regions where we operate," added Mr Fernández Verdes.
Thiess update.
The company also revealed that it has made a lot of progress with its Thiess transaction and that a deal could be imminent.
Its chairman explained: "The transaction with a new equity investor for Thiess is well progressed, with due diligence completed and negotiations expected to be finalised in the coming days. The introduction of an equity partner into Thiess capitalises on the outlook for mining, provides capital for Thiess' continued growth and enables CIMIC to strengthen its balance sheet."
