Diversified contractor Downer EDI was another major industrial (AGL was another yesterday) to disappoint investors with its December half-year figures, despite a one cent a share lift in interim dividend to 14 cents a share.
Downer EDI joined the impairments yesterday a $77 million pre-tax write-down in the value of its mining operations in its forthcoming interim results after what it called material contracts were not renewed.
The shares have recently outperformed and UBS downgrades to Neutral from Buy. The share price has increased around 20% in the year to date. The company has reiterated guidance for FY20 net profit of around $365m.
Downer EDI has disclosed that its partner at the Murra Warra wind farm, Senvion, has filed for self-administration in Germany. Senvion is responsible for the manufacture, transport, erection, and commissioning of the turbines and Downer for the balance of plant works.
Downer and Adani have mutually agreed to cancel prior 2014 letters of award regarding mine services and related infrastructure. Macquarie had not factored in Adani, given the uncertainties regarding funding.