Eight-month delays at the Gorgon gas project and Queensland's flood crisis have resulted in contractor AJ Lucas Group forecasting a sharp fall in first-half earnings.
The mining services provider said estimated earnings before interest, tax, depreciation and amortisation (EBITDA) for the six months to December 2010 were $3.0 million.
"This result has been impacted by the recent unseasonal rain and flood conditions in Queensland, as well as delays in approvals to the commencement of other infrastructure projects," the company said.
"In particular, there has been considerable delay in the commencement of drilling in the Gorgon HDD landfall project due to logistics associated with getting equipment to (Barrow) island, with drilling now forecast to commence at the end of Janaury 2011," it said.
When AJ Lucas was awarded the $95 million drilling contract for Gorgon, it stated that site works were due to commence in May 2010.
It joins a string of contractors to have been adversely affected by delays on the giant gas project, which are believed to flow from the need to transport all material to Barrow Island on barges under strict quarantine conditions.
The small lay-down and construction site on Barrow Island has added to the logistical complexities of the project.
AJ Lucas said despite the poor start to the financial year, it expects more favourable conditions in calendar 2011, when there is likely to be new irrigation, coal seam methane and water infrastructure projects.
As a result AJ Lucas said its results were likely to be heavily skewed towards the second half of fiscal 2011, with full year EBITDA in the range of $32 million to $36 million.
The company's half-year results are due to be released to the market at the end of February.
At 1205 AEDT shares in the company were flat, at $2.50.
