The West

Decmil chief executive Scott Criddle. Picture: Nic Ellis/The West Australian.
Decmil chief executive Scott Criddle. Picture: Nic Ellis/The West Australian.

Decmil Group is expecting a weaker second half than the first because of the resources construction company's project cycle rather than an industry slowdown.

Managing director Scott Criddle told Decmil's annual meeting today that the outlook remained strong for the contractor, particularly in servicing the oil and gas industry.

Mr Criddle said the company was still experiencing demand from tier one resources clients as major projects progressed.

"Current inidcations are that we will have a stronger first half to FY13 with the second half influenced by project timing with historical margins achievable," he said.

"While there is no doubt that there are some indications of a slowdown in the sector, it's not all doom and gloom.

"Recent commentary around potential delays to some projects has no impact on those major projects, particularly in the LNG sector, that already have approvals in place.

He said those projects would continue to drive demand for the next few years.

In addition to owning and operating an accommodation village in Gladstone, Queensland, Decmil is targeting maintenance work as part of a diversification strategy to take the company beyond the resources construction boom.

Chairman Giles Everist said there were more opportunities in Queensland and the contractor would continue increasing its exposure to oil and gas.

Decmil shares were off three cents, or 1.23 per cent, to $2.41 at 12.40pm.

The West Australian

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