Neptune rocked by goodwill writedown

Neptune Marine has lodged a net loss of $39.9 million for the year ended June 30, after taking a goodwill impairment to the tune of $35 million following a review of the performance of its individual operations.

Neptune today said its revenue remained stable in the 12 months to June 30, coming in at $116.3 million, slightly down from $117.9 million in FY2011.

Its net loss from continuing operations was $33.8 million, including the goodwill impairment of $35 million.

Neptune chief executive Robin King said the results reflected a year of transition for the company, which saw its continuing operations return to profitability while loss-making businesses were offloaded.

“While revenue has stayed broadly in line with last year – which is pleasing given the competitive market conditions – our restructure initiatives have resulted in a significant reduction in corporate and operating expenses, helping deliver a return to profit for our continuing operations,” Mr King said in a statement.

“Pleasingly, our service offering expanded in the year as we opened a service facility in Dampier, Western Australia, developed a base in Darwin and opened a facility in Melbourne.

Mr King said the company expected pressure on margins experienced in FY2012 to remain in Fy2013.

Neptune, nevertheless, will continue to expand its services into established oil and gas regions, Mr King said.

“Our expansion into key oil and gas regions across Australia such as potentially Gladstone and the Bass Strait will provide Neptune with a strong geographical footprint in the region and provide additional opportunities,” he said.

At close of trade today, Neptune stocks were down 4.3 per cent, trading at 2.2 cents.