Delta SBD’s new and varied enterprise agreement has reduced labour cost by 15%, the company says.

“Market conditions continue to be challenging, with continued pressure to further reduce prices to clients,” Delta SBD said.

“Mine closures continue with remnant mining opportunities and potential opportunities for a low cost operator.”

The coal sector downturn is still impacting hours worked, according to the company.

“The new and varied enterprise agreement demonstrates employee commitment,” it said.

Delta SBD recorded an underlying net loss of $200,000 for the six months to December 2014, largely reflecting a 12% reduction in revenue as general weakness in the Australian coal industry continued throughout the period.

Underlying EBITDA was $800,000, while underlying EBITDA margins improved to 2.7%, Delta SBD CEO Steve Bizzaca said.

“This has been an extremely challenging period both for the entire mining services sector and for Delta SBD,” he said.

“The management team has successfully reduced our site labour and organisation costs and debt levels.

“The cost reductions achieved have ensured that the company is more competitive and viable, is providing a value added solution to our clients in this difficult environment and is positioned appropriately when market conditions ultimately begin to improve.”