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Transfield Jumps After Confirming Profit Forecast: Sydney Mover

Feb. 10 (Bloomberg) -- Transfield Services Ltd. jumped the most in more than three years in Sydney trading after the Australian provider of services to the oil and gas industry confirmed it expects full-year profit will be at least 17 percent higher than analysts’ estimates.

The shares surged 12 percent to A$2.20 at the 4:10 p.m. close of trading in Sydney, the most since December 2008. They’ve advanced 1.9 percent this year, compared with a 4.7 percent gain in the benchmark S&P/ASX 200 index.

Net income for the year ending June 30 will be at the lower end of its forecast range of between A$130 million ($140 million) and A$135 million, the Sydney-based company said in a statement to the Australian stock exchange today. Analysts forecast a profit of A$111.5 million, according to a median of 14 estimates compiled by Bloomberg.

“Investors were concerned they’d come out with a weak result and have to downgrade full-year guidance,” said Will Seddon, who helps oversee A$300 million at White Funds Management in Sydney. “So this is a relief.”

First-half profit in the six months to Dec. 31 was A$44 million, the company said. Earnings will be skewed to the second half, with 60 percent of profit for the year in the period, due to weather-related reasons, it said. The company will release its full first-half earnings report on Feb. 22.

“Key risks include the economy outside the resources sector continuing to soften and the weather,” Managing Director Peter Goode said in the statement. “While the macro environment remains mixed, we’ve worked on our performance and focused on growth sectors.”

To contact the reporter on this story: Nichola Saminather in Sydney at nsaminather1@bloomberg.net

To contact the editor responsible for this story: Edward Johnson at ejohnson28@bloomberg.net

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