This article is 17 years old. Images might not display.
Managing director Gareth Mann said the company’s focus on fundamental commodities such as coal, as well as coal seam methane to liquefied natural gas projects, which required long planning cycles, was preventing any slowdown in orders.
However, Mann said while it was difficult to predict beyond the calendar year 2009 in regard to forward outlooks, with over 80% secured in next year’s plan, the company had about $412 million worth of work in hand, so confidence remains high.
“I would expect cost pressures to increase and we are focused on this across the group to ensure we remain competitive,” he said.
“On the positive side, the scale-back in the broader resources, non-coal, non-coal seam methane reserves sector is expected to relieve the skilled labour pressure in our sector to some degree.”
Mann said while some uncertainty existed around the current financial market turmoil, the company was well positioned by its diversification strategy.
Yet he commented that should the volatile market extend significantly to affect long-term capital project plans, the company could see a softening in the pipeline of projects in 2010 and beyond.
“We believe the longer-term outlook beyond the financial year 2009 may present some challenges as growth slows and potentially demand for coal and/or gas, hence our active ongoing strategy of diversification into other infrastructure sectors such as water,” he said.
“Flexibility is the key here and our exposure across a range of sectors mitigates any single risk factor.”
Mann said in terms of expansion and business overseas, the company would continue to provide consultancy services in the area of coal mining mechanisation and standards in India, but would “de-emphasise” direct mining involvement.
“The question of future acquisitions falls into two categories: routine business and strategic expansion,” Mann said.
“As for the larger strategic opportunities we will continue to examine and review several but, at this stage, we do not have any which we believe are mature enough to progress.”
