UGL has taken an $US85 million provision for a stalled LNG project, sending its shares sliding almost 10 per cent, as the company confirmed it has sold its global property services business DTZ for $1.215 billion to a consortium.
At the 4.15pm (AEDT) official market close, UGL shares were 14.64 per cent lower at $5.89, against a benchmark index fall of 0.21 per cent.
The company said it will book an $US85 million provision in its September accounts as its Ichthys LNG joint venture project stalls.
The Ichthys project, led by a consortium of CH2M HIL and UGL, and General Energy, has recognised a provision of $US170 million due to the project delays.
The costs will be incurred in 2015 and 2016 as the construction phase ramps up.
UGL also increased the forecast costs for its joint venture power station for the Ichthys project, due to changes in in the design in procurement phase of the project.
DTZ was bought by a consortium comprising of TPG Captial, PAG Asia Capital and Ontario Teacher's Pension Plan, after UGL announced it had entered an agreement with the group in June.
UGL reaffirmed it expects net proceeds between $1bn to $1.05bn, depending on the finalisation of transaction costs, with a capital return of $500m, or $3 per share, approved by shareholders last week.