Sedgman Limited (ASX:SDM) expects to post an interim net profit of $12.3 million dollars, up from $19.4 million in the first half of last year yet in line with market expectations.
The Resources services company says however its full year result is likely to fall below market consensus owing to ongoing volatility and weakness in the Australian coal sector.
Sedgman says it has also renewed operations contracts until June of next year with Peabody Energy Australia (ASX:MCC).
The contract renewals are expected to contribute $30 million in revenue to Sedgman’s full year performance.
Sedgman generated a net profit of $37.8 million in the 2012 financial year.
SDM Price at posting:
$1.01 Sentiment: None Disclosure: Held
