CSG lags cut into WDS’s outlook
START-UP delays in Queensland’s coal seam gas sector have forced contractor WDS to cut its net profit guidance for the 2010 financial year.
While the mining sector results remain strong, expected project movement in the CSG sector will come later rather than sooner for WDS.
The company cut its outlook from a market consensus net profit after tax of $A26 million to $22-24 million.
“We have positioned WDS to be a major player as CSG is developed and brought to markets, which every informed observer is predicting will happen over the next decade,” WDS chairman Jim McDonald said.
“The present necessary planning phase is, however, becoming more protracted than was first anticipated, and work we had expected to be doing during the financial year ending June 2010 now seems to be slipping into 2011.”
WDS said it did not believe the cut would affect its overall medium-term financial outlook.
Shares in WDS fell 12.38% by midday to $1.80.
Wednesday, 28 October 2009
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Queensland opens up CSG groundwater data
