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"Australia is facing a bad economic situation because much exploration and production activity has been halted. We are in a slightly better position because over the past one and a half years, we have shifted out from this into the maintenance space," said AusGroup CEO Gerard Hutchinson. Photo by Sim KihAUSGROUP LIMITED has returned to the black after slipping into a loss last year.
The provider of maintenance, construction, access services, fabrication and marine & port services to the energy, industrial and mining sectors in Australia and Southeast Asia posted FY2015 (year end June) net profit attributable to shareholders of A$6.2 million.
Revenue was up 41.3% year-on-year at A$427.4 million, thanks to strong contribution from the scaffolding services by its subsidiary MAS, as well as maintenance services.
"Fabrication will be part of our maintenance business going forward," said AusGroup CEO Gerard Hutchinson at a meeting for investment professionals on Monday.
Fabrication had traditionally contributed about A$130 million a year in revenue. The Group expects this to decrease to about A$60 million for the current year because of the completion of major capital expenditure projects in Australia.The change in structural demand resulted in a non-cash goodwill impairment of A$3.5 million in August 2015 related to fabrication facilities in Singapore and in Kwinana, Western Australia.
The Group diversified into port & marine services late last year with the S$41 million acquisition of an ancillary port located opposite Port Darwin. Known as Port Melville, the newly acquired asset's fuel facility was completed and commissioned in July 2015. The Group's fuel tank storage service is expected to commence after regulatory approvals are obtained.
The three tanks at Port Melville's fuel facility were completed in July 2015. Photo: CompanyAusGroup's order book as at 30 June 2015 was A$466.6 million.
The next page contains a summary of questions raised by the investment community and replies provided by the CEO, and by non-executive non-independent director Eng Chiaw Koon.
