Sedgman stages a profit turnaround

COAL handling group Sedgman has reported an annual net profit after tax for FY2015 of $16.5 million compared with a loss of $7.7 million for the previous year.
Sedgman stages a profit turnaround Sedgman stages a profit turnaround Sedgman stages a profit turnaround Sedgman stages a profit turnaround Sedgman stages a profit turnaround

Image courtesy of Sedgman.

Lou Caruana

The result was positively impacted by improved performance in the projects and operations businesses and lower overhead and support costs, delivering a sustainable improvement in earnings.

CEO Peter Watson said despite subdued market conditions the company had performed well.

“The FY2015 full year results represent the third consecutive half year of strong profitability and delivery of sustained earnings through improved business performance. We have increased our order book, improved our pipeline and successfully differentiated ourselves from our peers,” he said.

“Our commodity and geographic diversification continues to strengthen the business and our track record of successful project and operations delivery has continued. With a very clear strategy we are focused on driving superior performance across all aspects of the business.”

The company’s order book has grown to $509 million of contracted work in the projects and operations business at 30 June 2015, compared with $385 million at 30 June 2014.

Combined sales revenue for the projects business of $278.6 million increased by $57.5 million from the previous financial year, as a number of significant Engineering, Procurement and Construction (EPC) projects progressed, compared with lower activity in FY2014.

Watson said that Project margins are likely to remain under pressure, however, Sedgman is responding to market conditions by maintaining its focus on cost management and delivering commercially effective solutions.

“Our experience in lump sum EPC project delivery, specialist global engineering capability and technology knowledge provides a competitive advantage.

“Our operations business remains focused on delivering value through achieving industry leading facility performance metrics in areas such as annual run hours, process efficiency, operating costs and safety.

“Our operations consulting initiative is identifying a range of value add opportunities with new and existing clients.”

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