Sedgman managing director and chief executive officer Nick Jukes said the solid results showed its strategy to diversify into global coal and metals projects was creating value for shareholders.
“Our FY2011 result is particularly pleasing given there was a temporary interruption to some of our coal operations due to record flooding in eastern Australia in December 2010 and January 2011 followed by the impact of Cyclone Yasi in Far North Queensland,” he said.
“The year’s second half was strong and Sedgman’s order book stood at $606 million with a record three-year project pipeline of $7.6 billion as at June 30, 2011.”
Major coal contracts secured during the year include the $A85 million coal handling and preparation plant (CHPP) upgrade at the Bengalla mine in New South Wales, a $US31 million CHPP and operations contract at the UHG coal mine in Mongolia and a $A145 million CHPP expansion contract for the Lake Vermont mine in central Queensland.
After the end of the financial year, Sedgman announced the EPCM contract for stage 3 at Mongolia’s UHG coal mine ($US24.0 million), the Middlemount CHPP improvement project in the Bowen Basin ($A22.5 million), and a four- year agreement to be a preferred supplier for a pipeline of coal projects managed through the BHP Billiton’s projects hub in Brisbane.
Jukes said the preferred supplier agreement was an important milestone for Sedgman.
Under the four-year agreement, in place until June 2015, Sedgman is the preferred supplier for definition, engineering, construction and commissioning support and testing services for projects that involve the processing of metallurgical coal. Sedgman will be paid based on compensation principles that will include technology fees.
Sedgman also announced the supply of services to two coal projects in Queensland’s Bowen Basin – Caval Ridge mine and South Walker Creek mine.
Sedgman’s operations business continued to process about 20 million tonnes per annum of coal and 9Mtpa of ore under operations contracts which provided longer term, recurring income and diversification of business risk, Jukes said.
Increased project demand across all segments of the business has led to an increase in staff numbers to 988, up 29.5% from June 2010.
The group achieved an underlying net profit after tax of $A30.9 million, up 24.7% from FY2010.
