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Toxfree provides update on waste services contract with Chevron

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LNG Industry,

Tox Free Solutions Ltd (Toxfree) has announced that it has been advised by Chevron Australia Pty Ltd that the provision of waste management services to its operations on Barrow Island, Australia, will cease by the end of the financial year.

In the statement, the Toxfree claims that it will continue to provide services to Chevron’s other Australian operations under its master contractor services contract.

Toxfree informs shareholders that its estimated contribution from Barrow Island services in financial year 2018 – based on its assessment of the waste volumes – was expected to be between $1 million and $2 million in EBITDA.

The company has recently been awarded contracts for the Ichthys LNG project in Darwin, GLNG in the Surat basin and expanded scope of work for FMG’s waste services in the Pilbara (through the company’s indigenous joint venture). Toxfree claims that it is confident that these contracts will result in improved earnings in financial year 2018, despite this latest announcement.

Toxfree also claims that it has several strategic initiatives being implemented in order to improve productivity and decrease costs, including new waste treatment technologies to treat waste more efficiently. In addition to this, an organisational review of the company’s business structure is being carried out with the assistance of an external expert. The company expects that these initiatives will lead to significant cost savings.

Toxfree’s contract for industrial services on the Wheatstone LNG project with Bechtel will not be affected by this decision.

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