Renewables sector problems to weigh on Downer's FY profit

Image by: Downer EDI Ltd (www.downergroup.com).

January 23 (Renewables Now) - Downer EDI Limited (ASX:DOW) on Thursday said that grid and connection problems faced by renewable energy projects, among other factors, will result in lower than expected profit for the fiscal year to June.

Due to problems at its renewable energy projects as well as the current win rates and forecast delays in project awards in the resources-based construction market, the Australian company expects construction earnings to be down by about AUD 20 million (USD 14m/EUR 12m).

In addition, Downer expects higher than expected costs related to its efforts to complete a number of loss-making construction contracts in its engineering, construction and maintenance (EC&M) division.

Overall, the company said its full-year net profit after tax and amortisation (NPATA) is now seen at AUD 300 million.

(AUD 1.0 = USD 0.687/EUR 0.619)

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Before joining Renewables Now, Alex was a UK-focused business news reporter. Now she is covering global news from the renewable energy industry with a special interest in M&A.

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