Sedgman Limited (SDM) affirmed its FY10 profit guidance at the company's Annual General Meeting in Brisbane today. The resource sector services company announced an earnings guidance of 15c per share, excluding amortisation of intangible assets.

Managing director and CEO, Mark Read, said the company was in a position to take full advantage of a $4.8 billion pipeline of project work being targeted over the next three years.

He added that the company’s recent equity raising had been predicated on securing two high probability coal projects to replenish the Engineering Services order book.

“The good news is that a ($75 million) design and supply contract for the first of these projects, Xstrata’s ATCOM CHPP Upgrade, has been secured and work has commenced,” Mr Read said.

“Design work on Riversdale Mining’s Benga project, has also commenced under purchase order and we are confident that contracts for the design and supply of the 800 tonne per hour CHPP will be signed shortly.”

Sedgman remains confident both projects would regain most of the time lost that resulted in them running behind the original schedule.

“This means that full year earnings will be significantly weighted to the second half of the financial year,” Mr Read said.

“Accordingly, we are holding our profit guidance although it now represents the upper end of expectations.”

As at 1033 AEDT, Sedgman shares were down 1c to $1.61.