LONDON (Alliance News) - Waste management company Augean PLC on Monday said its underlying pretax profit will meet expectations for 2015, but said it will book an exceptional charge due to the continued slowdown in the North Sea oil and gas industry.
Augean said its underlying pretax profit for the year is set to match market expectations, though its net debt position should be lower than the market view after it secured robust operating cash inflows over the course of the year.
Augean said its Energy & Construction unit performed well in 2015, with a big rise in volumes sent to landfill sites, while its Radioactive Waste Services arm improved trading, as higher average prices offset lower volumes and boosted profit for the division.
Elsewhere, Augean said its Industry & Infrastructure arm performed well at its Port Clarence Waste Recovery Park, but this was offset by weakness at the Avonmouth site, where it is currently in the process of implementing an improvement plan to boost performance in 2016.
Augean also said its revenue and operating profit from its North Sea Services unit increased in 2015, despite the slowdown in drilling activity in the area. Though the North Sea Services arm won a new three-year production waste management contract last week, Augean said it will book a GBP2.9 million impairment charge on the unit in its 2015 results in anticipation of a long-term reduction in drill-cuttings volumes.
"We have enjoyed strong trading and have good momentum across a number of our businesses as we start 2016," said Chief Executive Stewart Davies.
Augean will publish its final results on March 22.
Shares in Augean were down 3.1% to 47.5 pence.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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