WDS Limited (ASX:WDS), a leading service provider to the Energy and Mining sectors, today updated its earnings guidance released to the market on 26 February 2013.
WDS now expects NPAT for the 12 months to 30 June 2013 to slightly exceed the upper end of its February guidance range of $6 to $8 million. Revenue for FY13 is now expected to be in the range of $350 to $355 million, compared with the Company’s previous guidance of $330-350 million. As foreshadowed in February, the closeout of major contracts and the ramp-up of the APLNG contract have positively impacted cash flow for the year. Improved earnings from the Energy Division have more than offset a continuing weak earnings performance by the Mining Division.
Strong Balance Sheet with Positive net Cash
With significant cash receipts in July, WDS advises that it has commenced the new financial year with a balance sheet that is ungeared and today has net cash in excess of $20 million. This provides the Company with opportunities for growth and considerable flexibility to explore its capital management options with the aim of increasing returns to shareholders over time. A review is currently underway with the expectation that further detail will be provided at the Company’s results briefing on 28 August 2013.
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