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Canada Market Weakens, Operating EBITDA Guidance $53 to $57 million

14 January 2016

Emeco today announced that worsening conditions in the oilsands industry resulting from the sustained lower oil price have significantly reduced the winter work programs in Canada. These weakening conditions have lowered outlook for the remainder of the financial year.

Managing Director, Ian Testrow, said "the Canada business did not experience its typical seasonal uplift in utilisation late in the second quarter. The oilsands industry has been hit hard by the sustained lower oil price with producers delaying reclamation works to reduce operating costs."

"This poor performance in Canada is expected to continue for the remainder of FY16, however has been somewhat offset by improved performance in Australia and Chile", Mr Testrow said.

With greater visibility our FY16 Operating EBITDA guidance for the group is between $53 million and $57 million, representing approximately 22% to 30% growth on the prior year.

Further details on second quarter operating performance will be provided in our Q2 FY16 trading update, to be released next week.

View the full ASX release

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