WDS back in black

ENGINEERING and construction contractor WDS has posted a net profit of $5.4 million for the 2011 financial year as its energy and infrastructure business returned to profitability.
WDS back in black WDS back in black WDS back in black WDS back in black WDS back in black

Image courtesy of WDS

Staff Reporter

This compares with a net loss of $7.5 million in the previous year.

Revenue for the year was up 11.9% to $376.1 million, with earnings before interest, taxes, depreciation and amortisation (EBITDA) increasing 133.6% to $32 million.

The energy and infrastructure division posted a 19.1% increase in revenue to $193.1 million with EBITDA of $15.5 million.

“The E&I division’s focus on consolidation and its strategic priorities resulted in its return to profitability,” managing director Terry Chapman said.

“These included a significant reduction in overheads through restructuring, the reassessment of our project selection criteria, strengthened project and tendering risk management processes and a review of non-essential plant and equipment.

“We will continue to focus on these areas of the business. The award of our first contract for the CSG-LNG export industry, and the emerging opportunities in coal mine gas drainage, provide a solid platform for the division.”

In July WDS won a $40 million contract from Santos for the construction of gathering pipelines, well pad connections and the construction of a water treatment plant for the Gladstone LNG project.

Chapman said the 2011 financial year had been one of consolidation for WDS, which made progress in risk and contract management, matching overheads to project opportunities, maintaining coal seam gas growth capability and maximising marketing efforts.