Ausdrill in halt ahead of downgrade
The company suspended trading in its shares on Tuesday as it warned of "ongoing challenging market conditions, which are weaker than expected".
Accordingly, the company intends to provide the market with a trading update on Wednesday.
It joins others in the sector such as Boart Longyear and Imdex which have warned of a prolonged and severe downturn, resulting in the share prices of both companies falling sharply.
Ausdrill's share price has fared better until now at least, thanks to less bearish statements by management on its prospects.
When releasing its year to June results, for example, Ausdrill pointed to the softer spending by smaller resources companies, while highlighting its long-term contracts with several clients, along with a series of measures aimed at consolidating cash and reducing costs.
In the year to June, Ausdrill's net profit declined just 7 per cent to $100 million.
Frequently Asked Questions about this Article…
Ausdrill suspended trading in its shares due to ongoing challenging market conditions that were weaker than expected. The company is preparing to downgrade its earnings expectations for the upcoming year.
Ausdrill suspended trading in its shares due to ongoing challenging market conditions that were weaker than expected. The company is preparing to downgrade its earnings expectations for the upcoming year.
Ausdrill is facing challenging market conditions characterized by a slump in resource sector spending, which has been weaker than anticipated.
The slump in resource sector spending has led Ausdrill to prepare for a downgrade in its earnings expectations. This is due to weaker-than-expected market conditions affecting the company's performance.
While Ausdrill's share price has fared better than some of its peers like Boart Longyear and Imdex, which have seen sharp declines, it is now experiencing pressure due to the challenging market conditions.
While Ausdrill's share price has fared better than some of its peers like Boart Longyear and Imdex, which have seen sharp declines, the company is still facing challenges due to the resource sector downturn.
Ausdrill has highlighted its long-term contracts with several clients and implemented measures aimed at consolidating cash and reducing costs to address the downturn in the resource sector.
Ausdrill has highlighted its long-term contracts with several clients and implemented measures to consolidate cash and reduce costs in response to the softer spending by smaller resources companies.
In the year to June, Ausdrill's net profit declined by 7% to $100 million, reflecting the impact of softer spending by smaller resources companies.
For the year ending in June, Ausdrill's net profit declined by 7% to $100 million, reflecting the impact of the challenging market conditions in the resource sector.
Ausdrill's long-term contracts with several clients provide a degree of stability and revenue assurance, which is crucial during periods of market volatility and reduced spending in the resource sector.
Similar to Ausdrill, companies like Boart Longyear and Imdex have warned of a prolonged and severe downturn in the resource sector, resulting in significant declines in their share prices.
Other companies in the resource sector, such as Boart Longyear and Imdex, have warned of a prolonged and severe downturn, resulting in significant declines in their share prices.
Investors can expect Ausdrill to provide more details on its earnings expectations and the impact of the challenging market conditions in its upcoming trading update.
Investors can expect Ausdrill to provide more detailed information about its financial performance and market conditions in its upcoming trading update, which is scheduled for release on Wednesday.
Ausdrill's management has been less bearish due to the company's long-term contracts with clients and strategic measures to manage costs and cash flow, which have helped mitigate some of the downturn's effects.
Call 1300 880 160
Start a chat
Schedule a call
