The construction industry has been hit hard by the global downturn, which has seen companies including a British company, Scott Construction, close and other companies struggle to survive.
A survey of nearly 1,500 Australian companies by financial services firm Ernst & Young found that about 30 per cent of Australian construction companies reported operating losses last year.
The companies that have posted strong results are some of the biggest players in the construction industry.
Ernst & Young has compiled the results of a survey of Australian firms.
While the majority of Australian companies have reported positive results, some companies have struggled to post strong results.
Scott Construction’s collapse was the biggest in Australia, according to Ernst & Jones, with the construction firm reporting a net loss of $1.4 billion.
In 2016, the construction company that is responsible for the building of Perth’s iconic $300 million Perth Opera House was the second-biggest losser, losing $835 million.
Also among the companies to report losses last month was Melbourne-based Perth-based Archant.
Archant said it had been forced to write down $821 million in debt.
However, it is also facing financial pressures, with a $6.6 million loss in the first half of this year, according the Australian Construction Association.
“We’re at the point where the market has become a lot more volatile, a lot of things are happening in the world,” Archant CEO Tom Strom said.
Meanwhile, Archant’s rival in the Perth Opera Centre is Melbourne-headquartered Archant West.
Strom said Archant was not looking to take on Archant at this stage.
With Archant on the back foot, Archont’s other major client, Australian firm Pacific Construction, has also struggled to recover.
Pacific Construction’s loss last year was $1 billion.
Source: Ernst & James The survey of the top 10 construction companies in Australia found that the biggest losses were made by Scott Construction (Australia), Archant Construction (South Australia), Pacific Construction (Victoria), Pacific North West Construction (New South Wales), Pacific Northwest Construction (Queensland), Pacific Engineering (Western Australia), Archimedes Construction (Nashua) and Archimede North (South Africa).
The report also found that Australian companies that are the main players in construction in other countries had not fared so well.
Australia’s largest construction company Archimedean had a net profit of $3.5 billion in 2017, while its competitor Archimetric (Quebec) recorded a loss of almost $1 million.