Programmed flags $28m impairment

Perth-based Programmed Maintenance Services has flagged a $28 million impairment in its first-half result, on the back of a depressed marine services market.

In a statement today, Programmed said it was in the process of assessing the carrying value of goodwill in its resources portfolio, particularly its marine services component.

“The market for marine services has significantly deteriorated in recent months,” the staffing, maintenance and project services company said.

Programmed said it had estimated a $28 million non-cash impairment, based on current oil and gas market conditions coupled with interest rates.

“This assessment takes no account of the earnings, benefits and synergies arising from the acquisition of Skilled Group,” it said.

However, the first-half result is expected to detail growth in the company’s property and infrastructure earnings, along with its workforce business.

Programmed also flagged an interim dividend of 6.5 cents per share fully franked, in line with its FY15 payout.

It also said the acquisition of Skilled had delivered about $16 million per annum in savings to date.

Earlier this week, marine services company MMA Offshore said it didn’t expect conditions in the offshore oil and gas vessel market to improve in the 2016 financial year, with low oil prices continuing to place significant pressure on market demand.

Programmed shares were 0.3 per cent higher to $2.96 each at 10am.