MARKETS

Calibre snares $140M Hay Point contract

CALIBRE Group's maintenance and engineering construction business G&S Engineering Services has be...

Lou Caruana
Calibre snares $140M Hay Point contract

The award increases Calibre’s forward order book to $1.44 billion.

The company expects approximately 60% of the project revenue to contribute to Calibre’s financial year 2014 revenue and the remainder over the subsequent period.

Shares in Calibre dropped more than 50% earlier this month after the company lowered its full-year profit guidance by 14.3% to $30 million due to challenging economic conditions.

The Perth-based mining services provider said the revised post-tax figure due to client decisions to curb development activity were a response to challenging market conditions.

It included the delay or slowdown of iron ore projects, international freight rail projects and major construction of coal projects.

After assessing the aggregate effect of continued project delays, volatility in key markets and deferment of mine and rail investment commitments, Calibre revised its fiscal 2013 revenue guidance from $780-810 million to $680-695 million.

Adjusted earnings were revised from $90-95 million to $50-55 million.

Calibre expects market volatility and uncertainty to remain a feature of the operating environment for the foreseeable future but says it is well-positioned to navigate the current market.

In February, the company announced a profit of $27.5 million for the six months ending in December 2012, up 15% on the previous half-year.

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