AUSTRALIA

WDS falls foul of APLNG

WDS chairman Ross Rolfe said his company was unlikely to secure any further work at the Origin En...

In a market update today where WDS said it would not meet its guidance, Rolfe said that based on recent feedback from APLNG, WDS "now accepts that due to the tragic incident and its various impacts on the APLNG project, WDS is currently demobilising from site and is unlikely to secure any further work from APLNG over the forecast period".

"Accordingly, the company has adjusted its energy division's projected revenue forecasts to reflect this and to recognise changes in assumptions around the timing of securing as yet unsecured work," he added.

"We believe that we can retain the confidence of the balance of our customers from whom we need to win work if we are to reach our projected modified forecast."

The WDS forecast of October 13 assumed that the company would continue to get contract work in the CSG sector from all participants, including APLNG, and Rolfe said WDS has "worked hard since its inception to, above all else, offer a secure and safe place for its workers".

"We know this is as important to us as it is to all our clients. After safety, our next most important goal is to offer a high quality service to all our customers. We know that meeting our clients' expectations and satisfying their needs is essential if we are to win their repeat business."

Following detailed consideration of the progress to date on the Eagle Downs coal project in Queensland's Bowen Basin, the impacts of its underperformance on the business to date and the risks associated with future performance as well as the current outlook for future work on the APLNG project, WDS' board has decided to adjust its FY15 forecast to include a one-off charge for impairment of "mining goodwill" of $5.4 million and an underlying net profit after tax loss of $6 million to $8 million (previously NPAT of $1 million to $3 million).

This has resulted in a total statutory NPAT loss of $11 million to $13 million.

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