Ausdrill FY profit meets forecast

Group says it can find new work in the 'near term' after earnings fall on slowdown in mining in Australia, Africa.

Mining services firm Ausdrill (ASL) says it is optimistic on new work in the current year, as it embarks on a cost review amid falling commodity prices and uncertain demand in the sector after meeting its forecast for full-year net profit.

Ausdrill's share price jumped 14.2% to $1.45 at 1026 AEST after the company revealed net profit fell 19.4% to $90.4 million, from $112.2 million, within the company's April guidance for between $90 million and $96 million. 

One-off costs weighing on the result included $6.6 million in bad debt provisions taken on investments in Central Norseman and Navigator Resources, and $9 million in costs on its acquisition of BTP. 

Meanwhile, revenues increased 6.6% to $1.12 billion, from $1.05 billion in the previous corresponding period. 

The group will pay a fully-franked final dividend of 5.5 cents, bringing the year's payout to 12 cents, down on the 14 cents paid last year. 

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