InvestSMART

WDS's $50 million win

The engineering contractor's stock lifted after announcing $50 million worth of contracts with Santos and Vale.
By · 10 Oct 2013
By ·
10 Oct 2013
comments Comments

Shares in WDS (WDS) bucked the market downtrend this morning after the engineering contractor announced it had secured more than $50 million worth of new contracts.

The news will bolster confidence in WDS’ earnings outlook for the current year with the market expecting sales to lift 1.5% for the current financial year to $356.5 million.

Analysts are expecting most contractors to post revenue declines due to the cut back in capital spending in the resources industry, but WDS has offset its exposure to the weak coal mining sector by focusing on energy projects.

Income from the new contracts, which are with Santos (STO) for its Gladstone LNG project and Vale for its Carborough Downs coal mine, will be booked in the current financial year.

WDS gained 1 cent, or 1.3%, to 75.5 cents in early trade when the ASX All Ordinaries is down 0.2%.

The stock, which is part of the Uncapped 100, is up more than 40% since we highlighted its potential on August 14.

Google News
Follow us on Google News
Go to Google News, then click "Follow" button to add us.
Share this article and show your support
Free Membership
Free Membership
Brendon Lau
Brendon Lau
Keep on reading more articles from Brendon Lau. See more articles
Join the conversation
Join the conversation...
There are comments posted so far. Join the conversation, please login or Sign up.