Contracting move a boost to Programmed
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.
Programmed managing director Chris Sutherland.