REPORTING SEASON: UGL Limited (UGL)

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Figure 1: UGL Limited 12 month chart

 

UGL Limited (UGL) on track for full year target even after big writedowns

 Australian mining engineering and services firm UGL Limited (UGL) reported a net loss of $122.5 million for the 6 months to the end of December 2014.

 The result was impacted by a number of one off items including: a loss of $175 million ($122.5 million after tax) on UGL’s Ichthys CCPP gas project, $57.8 million related to the slowdown in the mining sector that led to subdued market conditions; business sales costs and other internal items totalling $26.0 million.

 These one-offs were partially offset by the after tax profit of $46.67 million from the sale of its DTZ Property division, which was completed on 5 November 2014.

 UGL’s engineering division still listed a 7% lift in revenue and a 9% lift in earnings (EBIT) despite the slowdown in the mining sector. UGL maintained a stable order book of $4.9 billion after securing $1.2 billion in new contract wins and renewals, including the North West Rail Link project in Sydney. On its Ichthys CCPP project, a complete reprogram has been undertaken and new project team is now in place.

 UGL also announced that Robert Bonaccorso is stepping down as CFO on 13 March 2015 and Ray Church will take the role from 25 February.

 UGL will not pay an interim or final dividend to shareholders this financial year. UGL said it will update the market on how the company is tracking in May 2015. UGL said it was on track to achieve full year revenue target of $2.4Billion.

 

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Juliana Roadley, Market Analyst,