AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
Highlights:
- Downer EDI reported certain irregularities in its Australian utilities business recently.
- The group said that it expects environmental disruptions to impact its financial performance of 2023.
Shares of Australian integrated services provider Downer EDI Limited (ASX:DOW) has declined by 18.96% in the last five trading sessions. It is likely that share price performance is driven by the update shared on ASX on 8 December 2022.
The company reported certain accounting irregularities in its utility business that involved historical misreporting of work in progress and revenue in one of the maintenance contracts. As reported, the investigation has commenced, and adjustments seem to be related to September 2019 and November 2022.
Downer said that these irregularities are expected to result in an
On 12 December 2022, Downer EDI informed ASX that it did not reveal the irregularities as soon as it came to their notice because, at that time, the information was comprised of supposition, confidential and insufficiently definite.
The company added that it was difficult to assess the amount of overstated work in progress because of those work orders which were not completed.
What else?
In August, Downer EDI said it expects 10 to 20% growth in its underlying NPATA for FY23 under the assumption that labour shortage, weather and Covid-19 or any disruption would impact the performance.
Recently, Grant Fee, CEO, Downer EDI, confirmed that elevated costs and weather conditions had affected the first quarter performance, especially in New Zealand and the Eastern States of Australia. Based on October and November analysis, the company said that it is clear that it is unlikely that guidance will be met.
Fenn commented on the trading update,
Share price snapshot of Downer EDI
At 12:33 PM AEDT, Downer EDI shares were spotted trading 4.85% higher at AU$3.89 per share with a market capitalisation of AU$2.49 billion. In the past one year, the share price has dropped by 34.07%, and on a year-to-date basis, it has tumbled by 36.33%.