Hill experiences decline in second quarter revenue
Decline in consulting fees from Hill's Middle East project management business cited for fall in second quarter revenue
Hill International has cited a decline in consulting fees from its Middle East project management business for the fall in second quarter revenue.
Hill recorded second quarter turnover of $175.6m, a 3% decrease on the same period last year.
Operating profit for the second quarter was $8.2m, a decrease of 23.1% from the second quarter of last year.
Consulting fee revenue for the second quarter was $152.6m, a decrease of 4.5% from last year's second quarter.
The lower revenue was driven principally by Hill's Middle East project management operation, where consulting fee revenue declined by $8.6m, or 14.1%, during the second quarter from the same period last year.
This was partially offset by increases in consulting fee revenue of $2.2m, or 6.8%, in the US project management operation and $1.6m, or 13.9%, in the European construction claims operation.
EBITDA for the second quarter was $10.8m, a 20.3% decrease from the second quarter of 2015.
Net earnings attributable to Hill for the second quarter were down 66.1% to $1.5m, or $0.03 per diluted share, from net earnings of $4.4m, or $0.09 per diluted share, in the second quarter of 2015.
Hill's total backlog at June 30, 2016 was $949m, up 9.6% from $866m at March 31, 2016. Twelve-month backlog at June 30, 2016 was $414m, up 3.8% from $399m at March 31, 2016.
David, Richter, Hill's president and CEO, said: "Our performance in the second quarter lagged behind last year's primarily because of the impact that the collapse in oil prices had on new work in our Middle East project management operation last year and earlier this year.
"However, we expect this dip in revenue and its impact on our profitability to be temporary as we benefit from the nearly $90m in new backlog we have added thus far in 2016, including significant new work in U.S. and the Middle East."