Mining contractor WDS Limited has posted a shock profit downgrade, forcing managing director Terry Chapman to step down.
Shares in the company plunged by as much as 69 per cent yesterday after it revealed profit in 2014-15 would come in at between $1million to $3 million.
It was previously forecast the company would improve on the$13 million profit WDS posted in 2013-14.
The company said a number of factors were to blame for the downgrade including its unsuccessful bid for a major CSG project and problems its mining division was facing at Eagle Downs coal mine, a contract it won in December 2013.
A fatality at a WDS-operated LNG worksite in Queensland also led to delays and cost-blowouts.
The profit down grade has forced WDS to undertake a strategy review to be completed to the end of the year.
In the meantime, the Sydney head-office will close and relocate to Brisbane.
Managing director Terry Chapman has also agreed to stand down.
Despite the decline in outlook, WDS chairman Ross Rolfe said the company remained in a “strong position”.
“Our balance sheet is sound, we have a solid order book and a robust opportunity pipeline that will support future sustainable growth,” Rolfe said.