Testing and analytical laboratory services provider ALS has fallen into the red as its operations in the minerals and energy sectors come under pressure.
ALS made a net loss of $174.5 million in the year to March 31, compared to a net profit of $154.4 million in prior year.
The loss was primarily due to a $290.6 million impairment charge - foreshadowed in April - on its oil and gas investments in the wake of a rapid decline in the global oil price.
Underlying profit, which excludes the impairment charge, was down 21 per cent at $135.4 million.
"Markets for our services remain challenging in an environment of falling commodity prices and a strong cost focus from most clients," chairman Nerolie Withnall said.
ALS provides testing services to the minerals sector in geochemistry, metallurgy, mine site services and inspection.
The company also provides analysis and certification testing for the coal, oil and gas sectors.
Managing director Greg Kilmister said ALS's life sciences and industrial divisions improved their earnings, but that was offset by falls in the cyclical, resource-exposed minerals and energy divisions.
A fall in demand from the resources sector had also led to competitive forces and pricing pressure in its geochemistry business.
Weak demand also affected the metallurgy business in Australia and North America.
But the deterioration of market conditions in the minerals sector appeared to have slowed, and ALS expects a stable environment in the current year.
It said the oil and gas markets remained very attractive, and the company was confident of achieving its long-term goals in the sector.
Shares in ALS dropped 39 cents, or 6.1 per cent, to $6.04.
LOWER ACTIVITY IN MINERALS, ENERGY HURTS ALS
* Full year net loss of $174.5m, compared to net profit of $154.4m in 2013/14
* Revenue of $1.49 billion, down 0.7 pct from $1.5bn
* Final dividend of 10 cents per share, 25 pct franked, down from 20 cents, 50 pct franked
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