Ausenco finalises $155M banking facility

AUSTRALIAN engineering and management solution company Ausenco has finalised a new $A155.2 million global banking facility with ANZ Bank and HSBC that will help it meet bonding requirements associated with expected tender conversions.
Ausenco finalises $155M banking facility Ausenco finalises $155M banking facility Ausenco finalises $155M banking facility Ausenco finalises $155M banking facility Ausenco finalises $155M banking facility

Courtesy of Ausenco

Staff Reporter

The facility increases Ausenco’s global bonding capacity, incorporating extended debt and performance guarantee/bonds.

Ausenco chief executive Zimi Meka said the company was awaiting decisions on some of the best prospects in its history, with anticipated award decisions to be made over the next 4-6 months on project development tenders totalling $US10.9 billion ($A13.22 billion).

“These prospects have arisen directly as a result of our diversification strategy and we can balance shorter term, localised risks and fiscal uncertainties with longer-term rewards from the global outcomes we deliver for our clients,” he said.

“Recent project awards have delivered growth in our Australian, African and South American offices.”

Meka said the latter continued to be a strong market, while project deferrals in North America countered this, resulting in further personnel reductions and the closure of its Atlanta office.

The group expects first half revenues for 2010 of $A200-230 million and a net loss after tax of $9-13 million.

This projected result includes an office closure and surplus lease provision of up to $7.5 million, pre-tax, but does not include any intangible impairment losses that might be assessed following the current review.

Reported net profit after tax for the 2010 full year is projected to be $13-18 million.

“Compared with the second half of 2009, Ausenco has experienced lower first-half EBITDA (earnings before interest tax depreciation amortisation) and cash flows as a result of later than anticipated project starts, relatively higher comparable foreign exchange rates and lower than historic resource utilisation rates,” he said.

“In addition, higher tender related costs and resource capacity holding costs increased the group’s comparable cost base.”

The group expects revenue growth of 15- 20% in the second half of the year, with second-half EBITDA forecast to be $38-45 million.

Shares in Ausenco are up 11c to $2.58 this morning.

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