Woes at mining services provider Ausdrill Limited
(ASX:ASL) continue with the company again revising operational performance downwards.
Net profit is now expected in the $25 - $30 million range, down from earlier forecasts of about $35 million.
Ausdrill says while most of its business is performing in line with management expectations, its 50 per cent joint venture in African Underground Mining Services has been a significant drag on revenue.
Ausdrill attributes the inferior performance to increasing maintenance costs on an aging fleet and foreign exchange impacts on revenue from Ghana.
Ausdrill and joint venture partner Barminco have appointed a new operating officer to boost performance in that arm of the business.
The company says that as long as there is not a significant fall in commodity prices, it’s of the hope the current mining downturn has bottomed out. But, any recovery will be slow with challenging market conditions expected to continue into 2015.
Ausdrill produced a half year net profit of $13 million to the end of December 2013.
