• Upstream
  • Pipelines & Transport
  • Downstream
Oil&Gas Advancement
  • Home
  • News

    North Sea oil, gas industry to reach significant milestones due to investment increases, exploration, production success

    Oceaneering introduces new USV service for remote survey work at Offshore Europe 2023

    Oceaneering introduces new USV service for remote survey work at Offshore Europe 2023

    Oceaneering wins two contracts totaling over $100 million for work offshore Angola, Guyana

    Oceaneering wins two contracts totaling over $100 million for work offshore Angola, Guyana

    Anticipated $4.21 Billion Growth In AI Adoption In Oil & Gas

    Azerbaijan: Inauguration of the Absheron gas field

    Azerbaijan: Inauguration of the Absheron gas field

    Equinor capitalizes shares

    Equinor awards COSL Offshore Management two drilling contracts worth $369 million

    Petronas hires Maersk semi-submersible for Suriname exploration

    Cheiron makes new oil discovery in mature Egyptian exploration well

    Bahamas Petroleum signs rig contract for exploration well

    Neptune Energy begins drilling at first Egyptian exploration well

    Baker Hughes launches AI software to optimise oil and gas production

    Wintershall Dea, partners safely install additional subsea template for offshore Norwegian oil, gas field

  • Projects
    UN Condemns Energy Giants For Ignoring Science of All Things

    Global oil and gas projects pipeline at US$4 trn

    BP begins gas production at West Nile Delta project

    BP begins gas production at West Nile Delta project

    Bechtel and Cheniere Deliver LNG Ahead of Schedule on US Gulf Coast

    Bechtel and Cheniere Deliver LNG Ahead of Schedule on US Gulf Coast

    ABB wins $79m order for Bab onshore project in Abu Dhabi

    Phillips 66 and Bridger Pipeline LLC Announce Open Season for Rockies and Bakken Crude Oil Pipeline System

    Phillips 66 and Bridger Pipeline LLC Announce Open Season for Rockies and Bakken Crude Oil Pipeline System

    BHP successful in bids for blocks in the offshore Orphan Basin in Eastern Canada

    Operational excellence and safety continue to be a key driver in oil and gas sector

    Gazprom plans to carry forward cost efficient in 2018

    TGS announces new seismic project in the Anadarko basin

  • Whitepapers

    OGA 2017 Post Show Report

    US Polyethylene Export Market Report 2017-2020

    US Polyethylene Export Market Report 2017-2020

    Embedded SSD Flash Management

    Enterprise SSD: More Than Just a New Kind of Hard Drive

    Efficiency, Visibility and Reliability Keys to lower costs and greater profitability in oil and gas operations

    Don’t Miss the Unconventional Resource Revolution’s Next Wave

    Better Safety, Better Business: Maintain Compliance and Drive Revenue: Put All of Your Data to Work

    Breaking the Application Barrier: Why Data is the Most Valuable Asset in the Oil and Gas Industry

    Drilling Optimization Through Advanced Analytics Using Historical and Real-Time Data

  • Press Releases

    17th International Conference “LUBRICANT MARKET 2023”

    bp and Oman form strategic partnership to progress significant renewable energy and hydrogen development

    Saudi Arabia’s NEOM hydrogen mega-project cost soars to $8.5 billion

    OERA & ONHYM Reach Agreement to Enhance Offshore Energy Research & Development

    Santos receives major approval for oil and gas development offshore Western Australia

    Eni, Repsol press Maduro for more control to increase oil production from Venezuelan oil fields

    chevron invests in carbon capture and removal technology company, svante

    bp looks to further developments at Tangguh with PSC extension

    Falcon Oil & Gas completes successful drilling operations in Australia

    N’GENIUS solution on the horizon for oil, gas and LNG industry

    QatarEnergy, GE to develop carbon capture roadmap

    QatarEnergy, GE to develop carbon capture roadmap

  • Market Reports
    CNOOC Limited Announces Caofeidian 11-1/11-6 Oilfield Comprehensive Adjustment Project Commences Production

    Vital Energy acquires oil production assets in Permian basin for $128 million

    INPEX sells Eagle Ford tight oil production and development assets to Repsol

    Matador Resources acquires Delaware basin assets for $1.6 billion

    Funding For Oil And Gas Industry Is Evolving Dramatically

    Marathon Oil Completes Eagle Ford Acquisition

    Neptune Energy producing natural gas from Merakes project in Indonesia

    Fresh Gas Supply Need Is Created By Australian Energy Crisis

    Chevron Announces $15 Billion Capital and Exploratory Budget for 2022

    Chevron Announces $15 Billion Capital and Exploratory Budget for 2022

    Aramco announces second quarter and half-year 2021 results

    Aramco announces second quarter and half-year 2021 results

    Empire Petroleum buys US oil and gas assets from ExxonMobil

    Empire Petroleum buys US oil and gas assets from ExxonMobil

  • Events
  • Contact Us
No Result
View All Result
  • Home
  • News

    North Sea oil, gas industry to reach significant milestones due to investment increases, exploration, production success

    Oceaneering introduces new USV service for remote survey work at Offshore Europe 2023

    Oceaneering introduces new USV service for remote survey work at Offshore Europe 2023

    Oceaneering wins two contracts totaling over $100 million for work offshore Angola, Guyana

    Oceaneering wins two contracts totaling over $100 million for work offshore Angola, Guyana

    Anticipated $4.21 Billion Growth In AI Adoption In Oil & Gas

    Azerbaijan: Inauguration of the Absheron gas field

    Azerbaijan: Inauguration of the Absheron gas field

    Equinor capitalizes shares

    Equinor awards COSL Offshore Management two drilling contracts worth $369 million

    Petronas hires Maersk semi-submersible for Suriname exploration

    Cheiron makes new oil discovery in mature Egyptian exploration well

    Bahamas Petroleum signs rig contract for exploration well

    Neptune Energy begins drilling at first Egyptian exploration well

    Baker Hughes launches AI software to optimise oil and gas production

    Wintershall Dea, partners safely install additional subsea template for offshore Norwegian oil, gas field

  • Projects
    UN Condemns Energy Giants For Ignoring Science of All Things

    Global oil and gas projects pipeline at US$4 trn

    BP begins gas production at West Nile Delta project

    BP begins gas production at West Nile Delta project

    Bechtel and Cheniere Deliver LNG Ahead of Schedule on US Gulf Coast

    Bechtel and Cheniere Deliver LNG Ahead of Schedule on US Gulf Coast

    ABB wins $79m order for Bab onshore project in Abu Dhabi

    Phillips 66 and Bridger Pipeline LLC Announce Open Season for Rockies and Bakken Crude Oil Pipeline System

    Phillips 66 and Bridger Pipeline LLC Announce Open Season for Rockies and Bakken Crude Oil Pipeline System

    BHP successful in bids for blocks in the offshore Orphan Basin in Eastern Canada

    Operational excellence and safety continue to be a key driver in oil and gas sector

    Gazprom plans to carry forward cost efficient in 2018

    TGS announces new seismic project in the Anadarko basin

  • Whitepapers

    OGA 2017 Post Show Report

    US Polyethylene Export Market Report 2017-2020

    US Polyethylene Export Market Report 2017-2020

    Embedded SSD Flash Management

    Enterprise SSD: More Than Just a New Kind of Hard Drive

    Efficiency, Visibility and Reliability Keys to lower costs and greater profitability in oil and gas operations

    Don’t Miss the Unconventional Resource Revolution’s Next Wave

    Better Safety, Better Business: Maintain Compliance and Drive Revenue: Put All of Your Data to Work

    Breaking the Application Barrier: Why Data is the Most Valuable Asset in the Oil and Gas Industry

    Drilling Optimization Through Advanced Analytics Using Historical and Real-Time Data

  • Press Releases

    17th International Conference “LUBRICANT MARKET 2023”

    bp and Oman form strategic partnership to progress significant renewable energy and hydrogen development

    Saudi Arabia’s NEOM hydrogen mega-project cost soars to $8.5 billion

    OERA & ONHYM Reach Agreement to Enhance Offshore Energy Research & Development

    Santos receives major approval for oil and gas development offshore Western Australia

    Eni, Repsol press Maduro for more control to increase oil production from Venezuelan oil fields

    chevron invests in carbon capture and removal technology company, svante

    bp looks to further developments at Tangguh with PSC extension

    Falcon Oil & Gas completes successful drilling operations in Australia

    N’GENIUS solution on the horizon for oil, gas and LNG industry

    QatarEnergy, GE to develop carbon capture roadmap

    QatarEnergy, GE to develop carbon capture roadmap

  • Market Reports
    CNOOC Limited Announces Caofeidian 11-1/11-6 Oilfield Comprehensive Adjustment Project Commences Production

    Vital Energy acquires oil production assets in Permian basin for $128 million

    INPEX sells Eagle Ford tight oil production and development assets to Repsol

    Matador Resources acquires Delaware basin assets for $1.6 billion

    Funding For Oil And Gas Industry Is Evolving Dramatically

    Marathon Oil Completes Eagle Ford Acquisition

    Neptune Energy producing natural gas from Merakes project in Indonesia

    Fresh Gas Supply Need Is Created By Australian Energy Crisis

    Chevron Announces $15 Billion Capital and Exploratory Budget for 2022

    Chevron Announces $15 Billion Capital and Exploratory Budget for 2022

    Aramco announces second quarter and half-year 2021 results

    Aramco announces second quarter and half-year 2021 results

    Empire Petroleum buys US oil and gas assets from ExxonMobil

    Empire Petroleum buys US oil and gas assets from ExxonMobil

  • Events
  • Contact Us
No Result
View All Result
Oil&Gas Advancement
No Result
View All Result
Home Market Reports

Downer reports full year net profit after tax of $216.0 million

Yuvraj_ong by Yuvraj_ong
August 5, 2014
in Market Reports, Upstream
0

Downer EDI Limited (Downer) today announced a net profit after tax (NPAT) of $216.0 million for the 12 months to 30 June 2014, 5.9% higher than last year. Earnings before interest and tax (EBIT) reduced by 4.9% to $341.1 million.

 

Operating cash flow was up 30.2% to $583.4 million. At 30 June 2014, Downer’s gearing was 1.6% with available liquidity in excess of $1.0 billion comprising cash of $431.8 million and undrawn committed facilities of $617.0 million.

 

The Chief Executive Officer of Downer, Grant Fenn, said that despite Downer again achieving its full year guidance, the results were a reflection of the tough environment for the engineering and construction sector. 

 

“The mining based construction and services markets were subdued during the year and each of the company’s three divisions – Infrastructure, Mining and Rail – reported lower revenue,” Mr Fenn said. Group revenue was $7.7 billion, 15.3% lower than last year.

 

“We did move quickly in each of our businesses to reduce costs and improve productivity and total expenses were 16.5% lower than last year. Along with a number of initiatives to drive organic revenue growth, this will be a continuing theme into the new financial year.

 

“Our cash performance continues to be very strong, with cash conversion at 94.7% of earnings before interest, tax, depreciation and amortisation (EBITDA). Downer’s gearing is now at 1.6% and we will soon be net cash positive,” Mr Fenn said.

 

Downer Infrastructure

 

It was a challenging year for the Infrastructure business in Australia due to the decline in mining-based capital expenditure. The Western Australia and Rail Infrastructure businesses and the resources-based consultancies were affected most by the difficult market conditions. 

 

Prompt action was taken to reduce overheads and operating costs. As a result restructuring costs of around $11.4 million were incurred during the year.

 

The New Zealand business performed well and this helped to partially offset the decline in Australia. New Zealand’s performance was driven by robust levels of activity across all areas of operations, continued business improvement and the stronger New Zealand dollar. 

 

Downer Infrastructure’s revenue was $4.7 billion, 9.5% lower than last year, and EBIT was 17.0% lower at $191.1 million.

 

Downer Infrastructure won several large contracts during the period and these will start to contribute to revenue in 2015. This included the electrical and instrumentation work on the Wheatstone LNG Project in Western Australia, valued at $400 million, and the Stewardship Maintenance Contract for the Sydney West Zone road network, which Downer won in a JV with Mouchel, valued at $700 million over seven years.

 

In New Zealand, Downer won significant road infrastructure contracts with the New Zealand Transport Agency and local authorities in Auckland, Wellington and Hamilton as well as being selected as a lead contractor to work on the construction of the first stage of the NZ$140 million Central Plains Irrigation scheme. 

 

Downer Mining

 

Australia’s mining industry remains under intense pressure due to subdued commodity prices, particularly for coal and iron ore. Revenue for Downer Mining was 22.3% lower than last year due to the completion of two Peabody contracts in March 2013 and reductions in scope at Goonyella, Boggabri and Christmas Creek mines. 

A strong focus on cost reduction and improved productivity limited the reduction in earnings. 

Downer Mining’s revenue was $2.0 billion, 22.3% lower than last year, and EBIT was 1.6% lower at $171.4 million.

During the year, Downer Mining won a new 4.5 year, $500 million contract with Roy Hill Iron Ore for early mining services at the Roy Hill open cut iron ore mine in Western Australia and also a new two-year, $70 million contract with Crocodile Gold Corp for underground mining services at the Cosmo Gold Mine in the Northern Territory.

Downer Mining also won a five-year, $200-250 million contract extension with Millmerran Power Partners for mining services at the Commodore open cut coal mine in South East Queensland and a one-year contract extension with Idemitsu Australia Resources for mining services at Boggabri open-cut coal mine in New South Wales.

Downer’s contract with BHP Mitsubishi Alliance (BMA) at the Goonyella coal mine in Queensland was terminated in June 2014. This had no impact on this year’s performance but it will reduce Downer’s work-in-hand by around $360 million over the 2015 and 2016 financial years.

 

Downer Rail

 

Downer Rail’s financial performance reflects reduced demand for mining based locomotives and maintenance activity across the Australian rail sector. Restructuring costs of $16.9 million have been incurred as the business transforms its operations to reflect current demand levels and the move from manufacturing to reliability based asset management.

Revenue was 24.9% lower than last year, with about 80% of this reduction due to completion of the Waratah Rolling Stock Manufacturing (RSM) contract. The 78th Waratah train entered into passenger service on the Sydney rail network at the end of May 2014.

“The Waratah trains are world class passenger trains and the introduction into service has been excellent. We will now look to utilise the Waratah design and skills base for new opportunities,” Mr Fenn said.

Mr Fenn said the Rail business was very focused on meeting the needs of its customers and it would set the new benchmark for rail engineering services.

 

Corporate Costs

 

Corporate costs reduced by $61.2 million or 58.5% to $43.5 million.

Finance costs reduced by $22.2 million or 30.9% reflecting the lower interest rate environment, the refinancing of debt facilities at lower margins and the overall lower net debt position.  

The effective tax rate of 27.5% compares to 30.1% for last year reflecting a number of non-deductible expenses in the prior corresponding period.

 

Zero Harm

 

Tragically, a Downer employee died in April 2014 while performing stringing work for the construction of a new transmission line in Western Australia. This death occurred despite a very high level of safety management across the company and a mature safety culture. It reinforces the need across all Downer’s businesses to focus intensely on understanding and managing the critical risks that have the potential to cause our people serious injury. 

Our Lost Time Injury Frequency Rate is just over one incident per million hours worked. Our Total Recordable Injury Frequency Rate improved, from 5.42 per million hours worked to 4.83. 

 

On Market Share Buy-back

 

The company announced today an ongoing share buy-back program that will operate from 20 August 2014. The total number of shares to be purchased under the buy-back will depend on share price levels and capital requirements.

Mr Fenn said the program was part of Downer’s ongoing capital management strategy and would be managed in conjunction with capital requirements for growth.

“Downer’s balance sheet is in very good shape and strong operating cash flows are expected into the future. Downer is in a good position to take advantage of growth opportunities, including M&A, but any prospect will be subject to robust risk assessment,” Mr Fenn said.

“We continue to watch market developments closely and will focus on opportunities that are strategic, the right price and grow our capability.”

The Appendix 3C in relation to the on-market buy-back is attached to this announcement.

 

Dividend

 

The Downer Board has declared a fully franked final dividend of 12.0 cents per share, payable on 17 September, 2014 to shareholders on the register at 19 August, 2014. The company’s Dividend Reinvestment Plan will be suspended whilst the buy-back program is in operation and consequently will not operate for this dividend.

 

Outlook

 

The forward outlook varies by market. Government related expenditure on capital and services looks promising while resources based expenditure is expected to be flat, or declining, on current low levels. Underlying mining commodity markets are currently very difficult for a number of our major customers. The short term impact of this pressure on service providers like Downer is hard to predict. Longer term, this pressure will drive increased demand for our services as companies look for more efficient service delivery. 

 

For the 2015 financial year, Downer is targeting NPAT of around $205 million.

Previous Post

Tideland Unveils New Logo at IALA-SPAIN 2014

Next Post

Baker Hughes Announces Third Quarter 2014 Conference Call

Related Posts

Exploration Development

North Sea oil, gas industry to reach significant milestones due to investment increases, exploration, production success

September 7, 2023
Oceaneering introduces new USV service for remote survey work at Offshore Europe 2023
Exploration Development

Oceaneering introduces new USV service for remote survey work at Offshore Europe 2023

September 7, 2023
Oceaneering wins two contracts totaling over $100 million for work offshore Angola, Guyana
News

Oceaneering wins two contracts totaling over $100 million for work offshore Angola, Guyana

September 7, 2023
Azerbaijan: Inauguration of the Absheron gas field
News

Azerbaijan: Inauguration of the Absheron gas field

September 3, 2023
Equinor capitalizes shares
Drilling

Equinor awards COSL Offshore Management two drilling contracts worth $369 million

September 3, 2023
Petronas hires Maersk semi-submersible for Suriname exploration
Exploration Development

Cheiron makes new oil discovery in mature Egyptian exploration well

September 2, 2023
Next Post

Baker Hughes Announces Third Quarter 2014 Conference Call

Latest Post

Equinor capitalizes shares
Drilling

Equinor awards COSL Offshore Management two drilling contracts worth $369 million

September 3, 2023
Petronas hires Maersk semi-submersible for Suriname exploration
Exploration Development

Cheiron makes new oil discovery in mature Egyptian exploration well

September 2, 2023
Bahamas Petroleum signs rig contract for exploration well
Drilling

Neptune Energy begins drilling at first Egyptian exploration well

September 2, 2023
Baker Hughes launches AI software to optimise oil and gas production
Downstream

Wintershall Dea, partners safely install additional subsea template for offshore Norwegian oil, gas field

September 2, 2023
Empire Petroleum buys US oil and gas assets from ExxonMobil
Exploration Development

Texas regulator assesses over $2 million in fines against oil, gas operators

September 2, 2023
Exploration Development

Texas regulator assesses over $2 million in fines against oil, gas operators

September 2, 2023
Oil&Gas Advancement

About Us

Oil and Gas Advancement is an information centric knowledge sharing platform focused on the latest news in the B2B oil and gas sector bringing to our audiences B2B updates on upstream, downstream, pipeline and transport categories providing information on the latest projects and developments.

Resources

  • Advertise with us
  • Contact Us
  • Newsletter Archive
  • Download Mediapack

System

  • Search
  • Site Map
  • RSS Feed
  • Upstream
  • Pipelines & Transport
  • Downstream

© 2018 Copyright Valuemediaservices 2018 All rights reserved.

No Result
View All Result
  • Home
  • News
  • Projects
  • Whitepapers
  • Press Releases
  • Market Reports
  • Events
  • Contact Us

© 2018 Copyright Valuemediaservices 2018 All rights reserved.