In a market update, UGL Limited has revealed the outcomes of a comprehensive review undertaken across the company, since Ross Taylor assumed the role of CEO in November 2014.
Ichthys CCPP project
The UGL and CH2M Hill joint venture (JV) scope of the project is now 56% complete, with the construction component 30% complete. The project has stabilised with productivity targets being achieved and performance in line with the revised cost to complete.
Reorganisation
Following a thorough assessment of the company’s performance, UGL will cut approximately 200 full time jobs by 30 June 2015, with restructuring costs of US$36.7 million to be incurred in the second half of the financial year. Annual cost savings of US$33 million are expected to be realised from FY16.
Order book
Year to date, UGL has secured US$2.1 billion in new contract wins and renewals, and the committed order book at 31 May was US$5.1 billion. Strong tender activity is taking place across transport infrastructure, LNG maintenance and rail opportunities.
Outlook
Commenting on the outlook from FY16, CEO Ross Taylor said: “A significant amount of work has been undertaken to reposition UGL for its future and I am confident from FY16 we will deliver improved profitability.
“UGL is very well positioned in the current growth markets of transport infrastructure and LNG maintenance with future growth underpinned by our strong order book of US$5.1 billion.”
Adapted from press release by Katie Woodward