SERVICES Transfield: It's tough
As a result, the group gave no indication on Friday when dividend payments would be resumed to its dwindling investor base, with shareholder numbers having halved over the past five years as its share price and earnings have slumped.
"The focus is the preservation of capital," outgoing chairman Tony Shepherd told shareholders at the annual meeting. "Capital preservation and to be ready for when the economy turns."
Mr Shepherd was appointed this week to head the government's Commission of Audit into the nation's finances.
"Business conditions are some of the most challenging we have experienced," he said.
As a result, there is a freeze on dividends and salaries while capital spending is being limited.
Earlier this week, Transfield sold its share of a venture in New Zealand with WorleyParsons for $30 million, as well as selling its share of a venture in Qatar.
The company said it left unchanged its year-to-June net profit forecast at $65 million to $70 million, which is predicated on no further deterioration in revenue.
Frequently Asked Questions about this Article…
Transfield Services is facing tough trading conditions due to ongoing weak revenue generation, which has led the company to focus on cutting debt and preserving capital.
To manage its financial challenges, Transfield Services is cutting debt, freezing dividends and salaries, and limiting capital spending. They are also selling shares in ventures, such as those in New Zealand and Qatar, to improve their financial position.
Transfield Services has not provided any indication of when dividend payments will resume. The company is currently focused on preserving capital amid challenging business conditions.
Transfield Services' shareholder numbers have halved over the past five years, coinciding with a slump in its share price and earnings.
Transfield Services has maintained its year-to-June net profit forecast at $65 million to $70 million, assuming no further deterioration in revenue.
Recently, Transfield Services sold its share of a venture in New Zealand with WorleyParsons for $30 million and also sold its share of a venture in Qatar.
The outgoing chairman of Transfield Services is Tony Shepherd, who has been appointed to head the government's Commission of Audit into the nation's finances.
During these challenging times, Transfield Services is primarily focused on the preservation of capital to be ready for when the economy turns.
Call 1300 880 160
Start a chat
Schedule a call
