UGL tips 5 per cent rise in net profit

Diversified industrial services firm UGL has predicted net profit growth of 5 per cent for the 2012 financial year, after winning $450 million in new work and contract extensions in the first quarter.

UGL declined to put out guidance for the current financial year when it released its results for FY2011 in August, citing the fluctuating economic conditions worldwide.

Managing director Richard Leupen said the company was confident its procurement strategy and the quality of its order book would position it to deliver growth over FY2012.

“UGL's businesses have performed solidly in the first quarter of the 2012 financial year,” Mr Leupen said at the company's annual general meeting.

“UGL was awarded approximately $450 million in new contracts and extensions across all UGL businesses globally to both existing and new customers.”

Mr Leupen said the company was encouraged by an “increasingly active” bidding and enquiry pipeline for tenders across its infrastructure, rail and resources businesses in Australia.

“Tendering levels continue to grow and are now approaching levels experienced prior to the global financial crisis,” he said.

In August, UGL reported a rise in net profit of 9.7 per cent to $158.5 million for the 12 months to June 30.

At the time UGL said its profit was negatively affected by problems at Woodside's Pluto liquefied natural gas project, but would not specify details.

As of June 30, UGL's order book was $8.2 billion across more than 1,400 projects.

At 12:10PM WST UGL's stock was up 1.68 per cent, to $12.68.