Friday 29 Mar 2024
By
main news image

SINGAPORE (Aug 29): AusGroup, the provider of integrated service solutions to the energy, industrial and mining sectors across Australia and South East Asia, posted a loss of A$193.2 million ($198.8 million) for FY16. This compares to a profit of A$6.2 million a year ago.

Earnings were hit by a goodwill impairment charge of A$2.5 million, onerous lease costs of A$8.2 million in relation to its Singapore fabrication business and an impairment charge of A$14.2 million booked to other assets in both its fabrication businesses in Australia and Singapore.

In the Port & Marine business unit, the group also booked an impairment charge of A$72.3 million impairment against PPE (Property, Plant and Equipment) and Intangibles assets, as well as impairment to receivables of A$48.1 million.

Revenue increased 12.7% to A$481.8 million from a year ago. As at end June, the group’s work in hand stands at A$239.7 million.

Looking ahead, the group says that continuing margin pressures has led to a need to implement significant cost reduction initiatives, while noting that innovation in contractual and project delivery processes is key to embedding long term relationships with clients.

The group also acknowledged the need to strategically review how capital is deployed, while raising the possibility of divesting business units. It will also continue to monitor headcount and its cost base to ensure it is correctly sized for today’s competitive market.

Shares of AusGroup closed 4.4% lower at 4.3 Singaporean cents.

      Print
      Text Size
      Share