AusGroup    Last:0.009   -

AUSGROUP: 1H09 revenue up 28.8% to reach A$260.5 m

in slow consolidation mode...

 

What's short term projection for this? tks

 

38.5... not bad..

maybe contra off today..

gd luck DYODD

ozone2002      ( Date: 14-Mar-2012 09:47) Posted: accumulate @ low price.. avg 37c.. vested.. fundamentally ausgrp is doing a turnaround...

 

this counter is looking good. Unless they make another major boo-boo with their project implementation again by fabricating parts that don't fit... again.

 

By CARINE LEE

Singapore-listed AusGroup Limited on Thursday said its subsidiary, AGC Industries Pty Ltd, has formalised a A$160 million (US$167.92 million) contract with Karara Mining Limited (KML).

The contract consists of structural, mechanical and piping installation works at KML's Karara Iron Ore Project located approximately 210km east of Geraldton, Western Australia.

With this contract award, AusGroup's order book stands at A$441 million.

 

new 160m contract, should go up tmr.

 

accumulate @ low price..

avg 37c..

vested..

fundamentally ausgrp is doing a turnaround...

 

AusGroup Limited subsidiary, AGC chosen to construct a low grade pilot plant.

http://sgsharemarket.com/home/2011/10/ausgroup-limited-subsidiary-agc/

 

 

really miss the TA done by Richtan. Always found his charts and explanations helpful and explicit. I'm still holding on this this counter for now, waiting to see if the quality of the management and value of their project wins improve over the bext 2 years before deciding to divest or pump in more. At least got kopi money coming on Dec 12.

 

This  did  not  answer  the  QUESTION ?

And  the  5 tImes  prOfIt  grOwth  ?

pharoah88      ( Date: 31-Aug-2011 11:55) Posted: Q: Why did margins grow in Q4? Anthony: In the integrated services side, it is just the current good margins that are coming through. If you look at Q4, gross margins were 12.4% and in FY2010 it was 12.0%, so it is not out of line with the annual figure from last year. It just looks a bit higher compared to 4Q10. Stuart: Our business is project-driven, and you can get to a stage when we have to take costs. We can’t be clear about the margin until the variation is processed. We can have periods where we have costs without any approved variation to pick up any margin on it.

 

 

 

 

 

 

 

 

 

 

CFO Anthony Hardwick believes inflation in western Australia will not affect AusGroup's margins

 

 

 

 

 

 

 

 

 

 

Q: Why did margins grow in Q4?

Anthony: In the integrated services side, it is just the current good margins that are coming through. If you look at Q4, gross margins were 12.4% and in FY2010 it was 12.0%, so it is not out of line with the annual figure from last year. It just looks a bit higher compared to 4Q10.

Stuart: Our business is project-driven, and you can get to a stage when we have to take costs. We can’t be clear about the margin until the variation is processed. We can have periods where we have costs without any approved variation to pick up any margin on it.

 

Q: What edge does Ausgroup have over a competitor like Wah Seong?

Stuart: Insulation is critical to the process. In western Australia, an LNG train brings in gas from offshore.

When natural gas is compressed, it liquefies at –160 degrees Celcius. To keep that product in liquid form, everything has to be insulated. The insulation can be several layers thick.

It’s so critical that we have to train our workers to be able to apply it. They have quality inspectors to inspect how it is applied, and then there are very rigid specifications with the materials and the product that are used.

If you get the application wrong, you can be rejected. So we are one of the few companies in Australia that do this work.

 

Q: Can you elaborate on the two projects that dragged down your EBITDA?

Stuart: An LNG train is a very complex structure, and difficult to fabricate with space constraints. You need to have very good people and management systems to work in that environment.

For companies that haven’t done it before, it is very difficult for them to prove that they have the credentials to be able to enter into that market. Our Australian operations, ACG, has these credentials but sometimes we don’t get it right in complex situations.

There were project execution issues in the LNG business coupled with quality issues that were delivered to the site by the modules that the client supplied.

Another one was an iron ore project where modules that came in that didn’t fit as they were supposed to. We were forced into a situation where there was a huge amount of rework.

We have commercial plans to deal with the 38 modules that didn’t fit. We’ve got justification that supports cost recovery but it is still yet unresolved.

We can participate in many stages in the life cycle of an LNG train:
(1) by manufacturing products for the subsea portion and the offshore portion
(2) Onshore piping or structural fabrication work
(3) Structural mechanical piping contract
(4) Providing scaffolding access services
(5) Painting and insulation
(6) Maintenance and on-going support of an operating plant that has been completed

 

AUSTRALIA, WITH ITS committed investment in iron ore development LNG and oil & gas, is the envy of the US and many countries in Europe.

And all the opportunities are now in western Australia, said Ausgroup CEO Stuart Kenny at its FY2011 investor briefing at the Fullerton Hotel on Thu evening.

According to Ausgroup estimates, it stands to benefit from an estimated A$300 billion of major Australia resource projects and planned construction in the next 10 years.

Of this, about A$68 billion of work are projects that Ausgroup can tender for and order books were A$264 million as at end Jun.

Full year revenues were up 64.2%, at A$602.0 million while net profit attributable to shareholders were up 424.0% at A$12.4 million.

The company announced a turnaround in Q4, reversing a A$5.3 million loss in 4Q2010 to a net profit attributable to shareholders of A$4.4 million for 4Q2011.

A final tax-exempt cash dividend of 0.64 Singapore cents has been proposed.

 

 

can someone tell me what is brewing? this has been rallying alot since last week.

 

I had give up! exit 0.265 with RED

 

AusGroup selected as preferred supplier for Karara

11 August 2011

AusGroup Limited subsidiary AGC Industries Pty Ltd (‘AGC’) a leading Australian based fabrication, construction and integrated services company, announces today that it has been selected by Karara Mining Limited as their preferred supplier for the structural mechanical piping (SMP) works on the Karara Iron Ore Project located in the mid-west region of Western Australia.

Following the award of the Early Works Contract in March 2011, AGC will continue to support Karara Mining as it enters peak construction in the lead up to the first shipment of magnetite concentrate scheduled for June 2012.

The adoption of an integrated team approach will ensure both Karara Mining and AGC  work together to deliver the best possible result.

“We have a strong working relationship with AGC and are confident that this partnership will enable us to draw on the best from both teams allowing us to complete construction of the Karara Concentrator on time and within budget.” Said Mr Tim Netscher, Gindalbie’s Managing Director.

Stuart Kenny, CEO and Managing Director for AGC added: “This announcement demonstrates the successful relationship between AGC and Karara Mining. I am delighted that our track record of delivering safely and consistently in the development of the world-class Karara magnetite deposit has been recognised.”

To date, AGC have successfully delivered 80% of the Early Works contract, proving our exceptional commitment to Karara and the ongoing delivery of the project. AGC currently have a workforce of 60 onsite at Karara with the potential to increase to approximately 400 in peak SMP activities.          

Continue reading the joint announcement issued by Gindalbie Metals Limited (ASX: GBG) in the attached supplement titled ‘Karara joins forces with AGC for major construction contract’.