Ausgroup hit by higher costs

Singapore-listed contractor Ausgroup has reported a net profit of just $472,000 for the September quarter after incurring higher restructuring costs and delays to its new marine services business.

The small profit was on revenue of $132.7 million, with the company reporting a solid performance from its maintenance and access (scaffolding) business but lower work from its fabrication operations in Perth and Singapore.

Its work in hand was $389 million, down from $466 million at the end of the June quarter.

“While the pipeline of new projects is relatively thin, we are well positioned for extensions with our current projects,” managing director Gerard Hutchinson said.

The company incurred additional costs due to ongoing restructuring activities.

It also had a negative contribution from its ports and marine services business, which plans to operate a fuel facility at Port Melville north of Darwin.

The facility was commissioned in July this year but has been delayed by longer-than-expected environmental approval processes.

Mr Hutchinson said the necessary approvals had recently been granted and that the facility was on track to make a positive contribution in FY2016.