Chief executive Mark Read told the company’s annual general meeting today Sedgman remained on track to deliver cash earnings per share growth of 15-20% in the 2009 financial year inline with its previous guidance.

He was also confident a near-term pipeline of project work would underpin earnings growth through 2010 and beyond.

He explained while international demand for a range of commodities looks set to soften over the next 12-18 months as a result of the global slowdown in economic growth, Sedgman’s core business in the delivery of coking and thermal coal offered a “recession-proof” element to the Sedgman business structure and meant a more stable and predictable outlook.

“Sedgman has not experienced any significant contraction in coal project work. Accordingly, our guidance for financial year 2009 remains unchanged,” Read said.

Read said Sedgman was already involved in 75% of targeted projects in a pipeline worth more than $4 billion, either through client relationships of feasibility studies.

The company recorded a net profit after tax of $23.4 million, exceeding its market guidance. Meanwhile, combined revenue, including contributions from joint ventures rose 4.5% to $387.8 million.

In the domestic market, Sedgman previously announced the award by the BHP Billiton Mitsubishi Alliance (BMA) of the $80 million design and supply contract for the 800-tonne per hour Daunia coal handling and preparation plant (CHPP).

Read said the relationship with the alliance is expected to extend into the construction phase.

“Furthermore, BMA has contracted Sedgman to undertake the project definition phase for a new coal processing facility to be located at the Caval Ridge mine in the Bowen Basin,” he said.

“Sedgman has also received letters of intent to proceed with the design and construction of the run of mine upgrade at the Bengalla joint venture mine in New South Wales as well as a floatation upgrade for the 800-tonne per hour Sonoma CHPP.”

Read highlighted that Sedgman continues to execute a substantial number of feasibility studies.

One of the most noteworthy is the start of the feasibility study for the CHPP at Xstrata’s Wandoan coal project, a proposed new major development capable of opening up the Surat Basin in Queensland.

Read also told the meeting Sedgman’s strategy for focused international expansion was progressing with the design work for a 30Mtpa process plant for Vale in Mozambique.

“This important project is located in the Moatize Basin, one of the largest underdeveloped coking coal resources in the world,” Read said.

The company has also been engaged by Riversdale Mining to carry out a bankable feasibility study for the CHPP at the Benga coal project, also in the Moatize Basin.

Further afield, Sedgman’s Beijing office was recently awarded preferred tender status by Energy Resources for the provision of services for the initial 800tph CHPP module for the UHG coal project in Mongolia.

“In South America the company has commenced procurement and is in negotiations to undertake the construction of the El Cerrejon CHPP upgrade in Colombia,” Read said.

“Sedgman also remains focused on the development of its engineering capability in Santiago.”

Read concluded that Sedgman remained focused on profitably delivering quality projects and was confident 2009 would be another great year.

Sedgman shares jumped 1.16% in midday trading to 87.5c.