Perenti withdraws guidance, Downer defers dividend

MINING services provider Perenti is withdrawing its full-year guidance as a precaution.
Perenti withdraws guidance, Downer defers dividend Perenti withdraws guidance, Downer defers dividend Perenti withdraws guidance, Downer defers dividend Perenti withdraws guidance, Downer defers dividend Perenti withdraws guidance, Downer defers dividend
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The company had been forecasting full-year underlying net profit after tax of A$115-$120 million, but said it was no longer in a position to provide guidance due to the uncertainty around the COVID-19 pandemic.

Perenti said the outbreak had not had an impact on financial performance to date, but it was implementing strategies to maintain a strong financial position, including the deferral of non-essential capital and cost reductions.

"Perenti is proactively communicating with clients, staff and other key stakeholders to ensure it is best-placed to manage disruptions that arise as the COVID-19 situation evolves," managing director Mark Norwell said.

"We are focused on protecting the wellbeing of our people and working closely with key stakeholders so that we can continue to operate safely and effectively during this unprecedented period.

"We have not seen any major disruption to our operations to date but are mindful of the considerable impacts COVID-19 is having globally and its potential to disrupt the mining industry."

Perenti follows Downer and Monadelphous Group in withdrawing guidance.

Downer also announced today it was deferring the payment of its A$83 million interim dividend until September.

Downer CEO Grant Fenn said the company had a strong balance sheet, significant available liquidity and comfortable headroom in its bank covenants.

"Nevertheless, in the extraordinary environment created by COVID-19 we consider it is appropriate to defer payment of the interim dividend until September 2020," he said.

Smaller contractor Valmec also withdrew guidance on Friday of revenue of $130-140 million and EBITDA of $9.1-10.1 million, while LogiCamms said it would reduce overheads.

Shares in Perenti were down 3.1% to a 52-week low of 46.5c, while Downer also hit a 12-month low of $2.68 in early trade, but last traded 2.8% lower at $2.72.

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