Con­tract­ing move a boost to Pro­grammed

Pilbara News - - News - Peter Wil­liams

The iron ore ma­jors turn­ing to con­tract work­ers to cut costs has been good to staffing and main­tenance provider Pro­grammed.

Pro­grammed man­ag­ing direc­tor Chris Suther­land said staffing rev­enue had picked up in min­ing across iron ore and coal as production in­creased.

“Record production equals more staff in our book,” Mr Suther­land said. “Equally, I think the ex­tra in­crease in staff has re­ally been con­tracted rather than go­ing to (client) staff em­ploy­ees,” he said.

Rio Tinto told staff in Au­gust that new roles at its Pil­bara iron ore mines, ports and operations cen­tre would be filled by con­trac­tors from labour-hire com­pa­nies.

“From a point of view of iron and coal, def­i­nitely we’re in rea­son­able shape there, we’ve got very strong po­si­tions with our cus­tomers,” Mr Suther­land said.

“Those cus­tomers I think are do­ing quite well at the mo­ment.”

Mr Suther­land said Pro­grammed was tar­get­ing main­tenance work in the buoy­ant gold min­ing sec­tor and the emerg­ing lithium space.

After suf­fer­ing heavy falls in earn­ings ear­lier in the year, the com­pany’s marine operations are not ex­pected to de­cline fur­ther.

While WA business was weaker over­all, the State re­mained Pro­grammed’s big­gest source of rev­enue. It will pay an in­terim div­i­dend of 3.5 cents a share, down from 6.5 cents be­cause of the greater num­ber of shares on is­sue.

Pic­ture: Iain Gille­spie

Pro­grammed man­ag­ing direc­tor Chris Suther­land.

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