Ausdrill Limited
(ASX:ASL) expects to achieve a slightly diminished full year net profit of between $90 and $96 million owing to a slower than anticipated recovery in the Australian mining sector.
The mining services company says in its third quarter update that its core business of mining services in Australia and Africa has continued to perform as well as can be expected owing to a focus on production related services.
Detailing the impacts of the sector slowdown, Ausdrill reasoned its exploration activities have been stilted by a resumption delay following the seasonal shutdown over the Christmas period.
Furthermore, the company says commodity price falls have caused project deferrals, resulting in reduced demand for its equipment hire division.
Ausdrill says its forecast result is acceptable in light of the adverse conditions that have beset the industry since September 2012.
Ausdrill posted a net profit of $47.6 million in the first half of the current financial year.
