Brisbane, 17 June 2015: WDS Limited (ASX:WDS)
today updates its earnings guidance for the year ended 30 June 2015 as a result of a number of projects reaching completion and the close out of a number of contracts during the current month.
WDS now expects to report a total statutory NPAT loss for the year of $14-15 million, exceeding the guidance range of an $11-13 million loss provided in November 2014 and confirmed in February 2015.
The primary contributor to this adjustment relates to the slower-than-expected ramp up of a short term contract that commenced in February and was due for completion this month.
It had been expected that the time lost on this project would be regained through increased resourcing, however the required levels of productivity were not achieved. As a consequence approximately $2 million in additional costs will have been incurred in both labour and equipment hire to complete the project which is now scheduled for close-out in the third week of July. At this late stage of the contract, which will be close to 90% complete by 30 June, the increased costs will have a net negative impact of just over $1 million on our previous forecast.
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