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Decmil Group Limited wishes to provide an update on certain operational matters in the Company and its outlook for the remainder of FY16 and FY17.
Fuel Depot Project in Hastings
Decmil is currently undertaking a fuel depot tank project at the Hastings fuel terminal. A series of industrial relations and operational issues over recent weeks have resulted in a delay to the project timeline and an increase in project costs. Following a thorough review, the project is now expected to achieve its critical milestones by 30 June 2016. However, as a result of the issues outlined above, the project will have a $6.0 to $6.5 million negative impact on the Groups previously expected EBITDA for FY16 and cash position at 30 June 2016.
Restructuring Activities
As indicated previously the 2016 financial year is a transformational year for the Group as it restructures its traditional natural resources-based business and progresses its entry into new sectors with greater growth opportunities.
In addition to the restructuring...