WDS concedes poor 2015 results

THE death of one of its workers at the Australia Pacific LNG project last month and setbacks across its energy and mining businesses has forced WDS to rethink its operations and business strategies for 2015.
WDS concedes poor 2015 results WDS concedes poor 2015 results WDS concedes poor 2015 results WDS concedes poor 2015 results WDS concedes poor 2015 results

 

Andrew Snelling

The WDS worker suffered a fatal injury at a worksite at the APLNG project on September 15, following the death of an Ostwald Bros contractor at the project three days before.

WDS said it had “moved to examine carefully the root causes of the incident” and was “determined to bring about such improvements to further mitigate risks across all worksites”

WDS is a principal contractor for APLNG and is working on pipeline gathering associated with the development of CSG/LNG fields in Queensland.

Operations were suspended while investigations took place into the incident, with work restarting since.

WDS expects completion of its current APLNG work packages in the first half of 2015, at which time it will demobilise from site.

Further contributing to the trying times for the company has been its failure to win the initial work package for the sustain phase of a Queensland CSG project and the slow progression of work at its Eagle Downs coal mine.

The company expects the combined factors to have a $13 million profit impact on its 2015 financial year results.

Overall, net profit after tax is expected to be in the range of $1-3 million, strongly weighted to the second half.

Revenue is expected to hit between $330 million and $350 million.

The company has moved to learn from its setbacks, commissioning an independent review of its business strategy and operations, to be completed by the end of 2014.

In addition, the contractor will close its Sydney head office by the end of the year and relocate to Brisbane, while the board will transition to new leadership.

Terry Chapman will step aside as CEO of the company, with the search for a replacement to be a high priority.

Chapman will remain as CEO until a replacement is found.

“Terry was appointed managing director of WDS at a particularly difficult time in its history,” WDS chairman Ross Rolfe said.

“He has guided the company through a very challenging four-year period.

“We wish him well for the future and thank him for his leadership during this time.”

WDS is an Australian integrated provider of specialist development, design, engineering, construction, fabrication and maintenance related services to the energy and mining sectors.

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