Lincoln Crowne & Company weekly market update on the Engineering & Resource Services Sectors for the week ended 20th December 2013 Subsequent to this report Australian companies continued to provide earnings guidance to the market with both BLY and SWK providing guidance on the morning of 23rd December. As with TSE, BLY has lower rig utilisation than earlier in the year - contributing to performance.

1. WEEKLY
Australian Engineering & Mining Services
20 December 2013
WWW.LCC.ASIA
M&A Rumour and Activity
The Australian market was up after US Federal Reserve Chairman Ben Bernanke announced the central bank would reduce
its $US85 billion-a-month bond-buying program by $US10 billion from January. The Australian dollar dropped to US88.5
cents on the tapering decision.
Mining products supplier Bradken (ASX:BKN) made a takeover offer for heavy equipment manufacturer Austin Engineering
(ASX:ANG). Bradken’s proposal is to acquire all of the ordinary shares in Austin that it does not currently own at a fixed
exchange ratio of 0.75 Bradken shares for one Austin share. Bradken currently owns 21.5% of the outstanding shares in
Austin.
Bradken’s offer values Austin at close to $300 million, a 30% premium to Austin’s current market capitalisation. Austin’s
initial view is that “there is potentially benefit in combining the companies but believes the Proposal undervalues Austin.”
Austin is expecting a full-year earnings FY2014 result in the range of $40 to $50 million EBITDA with 80% of the full year
result being achieved in the second half.
News Headlines and Key Sector Developments
Ticker News/Event
Ticker News/Event
AAX
Secured an optimise phase contract with Karara Mining Limited to
provide engineering and project support services for Karara’s iron
ore operation in Western Australia
RCR
Novo Rail Alliance partners, including RCR’s subsidiary
O’Donnell Griffin, have signed a contract with Transport for
NSW, extending delivery of essential signalling, electrical, civil
and track projects for a further five years from 1 January 2014
DOW
Received a Notice of Award for a contract valued at approximately
$80M for electrical work on the Yandi Sustaining Project
UGL
Awarded a new five year contract by Chevron for the provision
of maintenance services for the operational phase of Chevron’s
Western Australian assets. The multi-million dollar contract
also includes extension options beyond the initial five-year term
FGE
Awarded $40M worth of works for ongoing asset management
programs in the North American coal sector, including a mix of
operations, maintenance, and small capital works
WTP
Awarded $350M contract to design and construct ten new
schools in Queensland. WTP was also awarded a $72M
contract to build a new Sydney office tower
LEI
Wesfarmers Resources has awarded Thiess a four-year contract
worth $570M to extend Thiess’ involvement in the Curragh North
Coal Mine, near Blackwater in Central Queensland’s Bowen Basin
Source: Capital IQ, Thomson Reuters, LCC research
IMPORTANT DISCLAIMER
This report has been prepared by Lincoln Crowne & Company Pty. Limited ("LCC"). The research is based on information obtained from
sources believed to be accurate and reliable. LCC does not guarantee the accuracy, reliability, completeness or suitability of any such
information and makes no warranty, guarantee or representation, expressly or impliedly about this research. LCC accepts no obligation
to correct or update the information. No opinion or recommendation is made within this research. This report is not intended to be,
nor should it be relied on, as a substitute for professional advice. This report should not be relied upon as the sole basis for
any investment decision or planning, and LCC does not accept any responsibility on this basis for actions made.
Page 1
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2. WEEKLY
Australian Engineering & Mining Services
20 December 2013
Ticker Company Name
AJL
ASL
AAX
ANG
BLY
BKN
BYL
BOL
BSA
CDD
CGH
COF
DCG
DSB
DOW
EAL
EGN
EHL
EVZ
FWD
FGE
GCS
GNG
HDX
IMD
LEI
LCM
LYL
MLD
MAH
MYE
MIN
MCE
MND
NMS
NOD
NWH
OTC
PRG
RCR
RQL
SND
SDM
SSM
SWL
SXE
STS
SWK
TPP
TSE
UGL
VMG
WDS
WOR
WTP
AJ Lucas Group Limited
Ausdrill Limited
Ausenco Limited
Austin Engineering Limited
Boart Longyear Limited
Bradken Limited
Brierty Limited
Boom Logistics Limited
BSA Limited
Cardno Limited
Calibre Group Limited
Coffey International Limited
Decmil Group Limited
DeltaSBD Limited
Downer EDI Limited
E&A Limited
Engenco Limited
Emeco Holdings Limited
EVZ Limited
Fleetwood Corporation Limited
Forge Group Limited
Global Construction Services Limited
GR Engineering Services Limited
Hughes Drilling Pty Limited
Imdex Limited
Leighton Holdings Limited
Logicamms Limited
Lycopodium Limited
MACA Limited
MacMahon Holdings Limited
Mastermyne Limited
Mineral Resources Limited
Matrix Composites & Engineering
Monadelphous Group Limited
Neptune Marine Services Limited
Nomad Building Solutions Limited
NRW Holdings Limited
OTOC Limited
Programmed Maintenance Services
RCR Tomlinson Limited
Resource Equipment Limited
Saunders International Limited
Sedgman Limited
Service Stream Limited
Seymour Whyte Limited
Southern Cross Electrical Engineering
Structural Systems Limited
Swick Mining Services Limited
Tempo Australia Limited
Transfield Services Limited
UGL Limited
VDM Group Limited
WDS Limited
WorleyParsons Limited
Watpac Limited
WWW.LCC.ASIA
Market Cap Open Price Last Sale Price Week High Week Low
(AUD Million)
(AUD)
(AUD)
(AUD)
(AUD)
262
258
80
229
164
914
40
57
26
939
117
60
363
13
2,008
75
50
111
8
160
50
82
79
62
98
5,190
97
165
431
150
57
2,029
68
1,662
83
16
343
21
377
443
35
67
126
55
92
124
31
63
6
425
1,102
16
126
3,899
164
0.95
0.87
0.67
3.08
0.31
5.36
0.36
0.13
0.12
6.59
0.37
0.22
1.91
0.28
4.56
0.69
0.16
0.19
0.04
2.34
0.52
0.48
0.57
0.29
0.49
15.57
1.33
4.08
2.40
0.11
0.70
10.52
0.74
15.21
0.05
0.05
1.24
0.10
3.35
3.25
0.13
0.85
0.55
0.21
1.20
0.85
0.47
0.29
0.04
0.87
6.40
0.01
0.85
15.43
0.84
0.96
0.84
0.65
3.55
0.36
5.43
0.37
0.12
0.12
6.66
0.37
0.25
2.21
0.28
4.62
0.65
0.16
0.20
0.04
2.72
0.63
0.48
0.52
0.30
0.47
15.41
1.45
4.04
2.46
0.13
0.76
11.32
0.72
18.06
0.05
0.06
1.23
0.10
3.28
3.42
0.14
0.85
0.59
0.19
1.18
0.72
0.50
0.30
0.04
0.82
6.96
0.01
0.84
16.36
0.87
1.00
0.90
0.70
3.60
0.38
5.72
0.37
0.13
0.12
6.78
0.39
0.25
2.25
0.28
4.69
0.70
0.16
0.21
0.04
2.76
0.70
0.48
0.58
0.30
0.50
15.86
1.50
4.28
2.47
0.13
0.76
11.34
0.76
18.07
0.05
0.06
1.24
0.11
3.35
3.43
0.14
0.85
0.59
0.22
1.20
0.86
0.50
0.30
0.04
0.91
7.06
0.01
0.87
16.59
0.91
0.94
0.80
0.64
3.05
0.31
5.10
0.36
0.12
0.12
6.24
0.36
0.21
1.91
0.28
4.47
0.60
0.16
0.18
0.04
2.32
0.51
0.48
0.52
0.26
0.46
15.10
1.30
4.04
2.37
0.11
0.70
10.39
0.68
15.15
0.04
0.05
1.16
0.10
3.13
3.11
0.12
0.75
0.55
0.19
1.16
0.72
0.47
0.28
0.04
0.81
6.30
0.01
0.84
15.43
0.83
Weekly Volume
% Change
▲
▼
▼
▲
▲
▲
▲
▼
—
▲
—
▲
▲
—
▲
▼
▲
▲
▼
▲
▲
▲
▼
▲
▼
▼
▲
▼
▲
▲
▲
▲
▼
▲
—
▲
▼
▲
▼
▲
▲
▲
▲
▼
▼
▼
▲
▲
▲
▼
▲
▼
▼
▲
▲
1.1%
-3.8%
-3.0%
15.3%
14.5%
1.3%
2.8%
-4.0%
0.0%
1.1%
0.0%
16.3%
15.4%
0.0%
1.3%
-5.1%
3.2%
6.8%
-5.0%
16.0%
20.2%
1.1%
-8.8%
3.4%
-4.1%
-1.0%
9.4%
-1.0%
2.5%
13.6%
8.6%
7.6%
-2.7%
18.7%
0.0%
3.7%
-0.4%
4.2%
-2.1%
5.2%
7.7%
0.6%
7.3%
-9.5%
-2.1%
-15.9%
5.3%
1.7%
11.4%
-5.7%
8.7%
-10.0%
-0.6%
6.0%
4.2%
Trend
EV/
EV/
EBITD
EBIT
NM
2.6x
2.2x
5.7x
3.7x
7.5x
2.1x
3.2x
3.7x
8.1x
2.7x
7.5x
4.7x
2.0x
3.7x
6.8x
NM
3.0x
6.3x
4.9x
NM
3.5x
5.8x
4.6x
2.9x
3.2x
6.0x
4.3x
3.4x
1.2x
2.5x
6.3x
6.4x
6.1x
78.7x
1.2x
2.6x
2.3x
6.7x
6.2x
2.9x
6.9x
1.5x
NM
3.2x
2.9x
2.8x
2.1x
NM
5.0x
15.2x
NM
4.8x
7.8x
2.2x
NM
4.6x
2.8x
6.9x
10.9x
11.1x
3.6x
7.0x
10.8x
9.8x
5.4x
13.9x
5.2x
2.7x
6.6x
8.0x
NM
8.8x
8.7x
8.2x
NM
5.6x
6.3x
6.7x
3.8x
6.8x
6.3x
4.6x
5.2x
2.5x
3.5x
9.5x
84.3x
7.0x
NM
1.6x
3.5x
3.3x
8.1x
8.4x
5.9x
7.4x
3.3x
NM
3.6x
3.5x
9.2x
4.0x
NM
9.9x
28.4x
NM
10.5x
8.9x
10.3x
So urce: Capital IQ, LCC research
IMPORTANT DISCLAIMER
This report has been prepared by Lincoln Crowne & Company Pty. Limited ("LCC"). The research is based on information obtained from
sources believed to be accurate and reliable. LCC does not guarantee the accuracy, reliability, completeness or suitability of any such
information and makes no warranty, guarantee or representation, expressly or impliedly about this research. LCC accepts no obligation
to correct or update the information. No opinion or recommendation is made within this research. This report is not intended to be,
nor should it be relied on, as a substitute for professional advice. This report should not be relied upon as the sole basis for
any investment decision or planning, and LCC does not accept any responsibility on this basis for actions made.
Page 2
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