Busy year improves Sedgman profits 45%

DEALS to outfit coal handling and preparation plants at key projects in the Bowen and Gunnedah basins helped processing contractor Sedgman lift profits 45% to $39 million over the 12 months ending June 30.
Busy year improves Sedgman profits 45% Busy year improves Sedgman profits 45% Busy year improves Sedgman profits 45% Busy year improves Sedgman profits 45% Busy year improves Sedgman profits 45%

Image courtesy of Sedgman.

Justin Niessner

In a period that also saw the company earn the Prime Minister’s Australian Exporter of the Year award, Sedgman secured procurement contracts with Aston Resources’ Maules Creek project, Jellinbah’s Lake Vermont mine and BHP Billiton Mitsubishi Alliance’s Daunia and Saraji mines.

Sedgman reports that as of the end of the 12-month period, it has 158 projects in a three-year pipeline worth a total of $6.6 billion.

Revenues on the year increased 17% to $651 million while earnings before interest, tax and amortisation lifted 51% to $64 million in line with company expectations.

Sedgman managing director Nick Jukes said that although softening commodity prices and the high Australian dollar were likely to dampen future growth in the short term, the company’s order book was expected to increase by $485 million worth of projects currently in negotiation.

“We are well placed globally with a strong presence in Asia, South America and South Africa to take advantage of offshore opportunities,” he said.

Other coal projects undertaken by Sedgman during the year include an $85 million contract in joint venture with Thiess for construction of a new CHPP at the Codrilla mine in Queensland, a $22.5 million CHPP contract with Peabody Energy for its Middlemount mine and a $13 million deal to operate at Whitehaven’s flagship Narrabri mine.

Sedgman said it was processing 26 million tonnes of coal per annum as of the end of the 12-month period.

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