Latest news with #SaundersInternational
ABC News
27-05-2025
- Business
- ABC News
Project Caymus fuel tanks built unlawfully in Darwin for US military not designed to withstand major cyclone
Eleven massive fuel tanks built for the US military to contain 300 million litres of flammable and combustible liquid on Darwin Harbour are not designed to withstand a category three cyclone. The findings are contained in an engineering report and can be revealed after the ABC reported the tanks were constructed unlawfully, without a building permit. Touted in 2021 as a "pivotal project" for US defence operations based out of Australia's north, the $270 million Project Caymus fuel storage facility was meant to be operational by September 2023. The tanks have never held fuel though, in part because water is intruding into their base. US company Crowley owns the facility, having won a US government tender to build it on Northern Territory government land. Two subcontractors which consecutively held the role of lead builder — Australia-based Saunders International and US-based Latitude 63 — have both had its contracts terminated by Crowley. The engineering report, obtained by the ABC, was completed in December 2023 by the project's building certifier at the time, Darwin firm Acer Forester. It was commissioned by Latitude 63 and based on advice from the principal structural engineer at Adelaide-based company Fyfe. The report includes an assessment of the "importance level" for the tanks, as per the National Construction Code (NCC). An importance level is designated for all structures in Australia and is based on the consequences of a structure failing during a natural disaster such as a cyclone. The report shows the tanks on Darwin Harbour should be classed at importance level four, the highest classification, for structures "containing hazardous materials capable of causing hazardous conditions that extend beyond property boundaries". Instead, the tanks were initially designed at importance level two, the classification for a car garage, shed or suburban backyard workshop. And before construction began, the plans were altered to reduce the tanks' wind durability below importance level one. "[Crowley] specified that the tanks be designed at a design wind speed of [249.5 kilometres per hour]," the advice from Fyfe said. "However, the tank[s] were designed to a [193.5 kilometres per hour] design wind speed. "This error was embedded within the Saunders International computer calculations, where it would have been difficult for [Crowley] to discover." According to the Bureau of Meteorology, gusts during a category three cyclone can reach up to 224 kilometres per hour. In 1974, Severe Tropical Cyclone Tracy destroyed Darwin with wind gusts reaching 217 kilometres per hour before wind-recording instruments failed. A cyclone has not hit Darwin since construction began on the Project Caymus fuel tanks. The report also noted that an April 2023 document prepared by Saunders that "certifies" the design of the tanks was "not acceptable". Saunders International did not respond to specific questions from the ABC about issues raised in the report. Instead, it provided a statement saying: "Saunders left the site in April 2023, having completed construction contract requirements in full compliance with relevant codes, practices and permits." "The tanks were constructed to the specifications provided by the owner and their appointed engineer," the statement said. "We refer you to Crowley, the owner and operator, for any further inquiries." In the report, Fyfe also advised of the dangers associated with the tanks' inadequate design. "Failure of the tanks in a cyclonic wind event could result in over 200 million litres of flammable and/or combustible liquid becoming uncontained," the report said. "[This would cause] hazardous conditions beyond the property boundaries and to significant population areas and strategic facilities. "[It would] have catastrophic consequences on people, property and the environment." In its findings, Acer Forester said the lives of Darwin residents would be at risk if the tanks failed during a cyclone while operational. "The impact on the public (including environmental damage) would be at least substantial, if not extreme." In a statement, Latitude 63 said it presented the report to Crowley, which subsequently "removed Acer Forester from the project". Latitude 63 said Crowley also amended their contract "to remove responsibility for project certification". Latitude 63 said it continued to "fulfil its remaining obligations within the revised scope of work", but was ultimately also removed from Project Caymus by Crowley. Crowley said it was "continuing to work closely with the Northern Territory government to ensure the … facility is constructed in compliance with all relevant safety, construction and environmental standards". "Throughout the design and construction process, Crowley has confirmed that all required approvals will be obtained from the Northern Territory government and other relevant authorities prior to the start of operations," its statement said. The NT Department of Lands, Planning and the Environment said it was "working with Crowley for it to provide independent verification of the required safety, construction, and environmental standards and considerations". "This independent evidence is necessary to determine that the tanks meet Australian standards that will ensure the project can be completed and operated," the department said in a statement. The NT government has never taken action against Crowley for starting and continuing construction at Project Caymus without a building permit.
Yahoo
23-04-2025
- Business
- Yahoo
Is Weakness In Saunders International Limited (ASX:SND) Stock A Sign That The Market Could be Wrong Given Its Strong Financial Prospects?
It is hard to get excited after looking at Saunders International's (ASX:SND) recent performance, when its stock has declined 13% over the past three months. However, a closer look at its sound financials might cause you to think again. Given that fundamentals usually drive long-term market outcomes, the company is worth looking at. Specifically, we decided to study Saunders International's ROE in this article. ROE or return on equity is a useful tool to assess how effectively a company can generate returns on the investment it received from its shareholders. Put another way, it reveals the company's success at turning shareholder investments into profits. Our free stock report includes 4 warning signs investors should be aware of before investing in Saunders International. Read for free now. ROE can be calculated by using the formula: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Saunders International is: 18% = AU$9.5m ÷ AU$54m (Based on the trailing twelve months to December 2024). The 'return' refers to a company's earnings over the last year. So, this means that for every A$1 of its shareholder's investments, the company generates a profit of A$0.18. See our latest analysis for Saunders International We have already established that ROE serves as an efficient profit-generating gauge for a company's future earnings. Depending on how much of these profits the company reinvests or "retains", and how effectively it does so, we are then able to assess a company's earnings growth potential. Assuming all else is equal, companies that have both a higher return on equity and higher profit retention are usually the ones that have a higher growth rate when compared to companies that don't have the same features. At first glance, Saunders International seems to have a decent ROE. And on comparing with the industry, we found that the the average industry ROE is similar at 15%. This probably goes some way in explaining Saunders International's significant 33% net income growth over the past five years amongst other factors. We reckon that there could also be other factors at play here. Such as - high earnings retention or an efficient management in place. As a next step, we compared Saunders International's net income growth with the industry, and pleasingly, we found that the growth seen by the company is higher than the average industry growth of 26%. The basis for attaching value to a company is, to a great extent, tied to its earnings growth. The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in. By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await. One good indicator of expected earnings growth is the P/E ratio which determines the price the market is willing to pay for a stock based on its earnings prospects. So, you may want to check if Saunders International is trading on a high P/E or a low P/E, relative to its industry. Saunders International's three-year median payout ratio is a pretty moderate 35%, meaning the company retains 65% of its income. This suggests that its dividend is well covered, and given the high growth we discussed above, it looks like Saunders International is reinvesting its earnings efficiently. Additionally, Saunders International has paid dividends over a period of at least ten years which means that the company is pretty serious about sharing its profits with shareholders. Overall, we are quite pleased with Saunders International's performance. In particular, it's great to see that the company is investing heavily into its business and along with a high rate of return, that has resulted in a sizeable growth in its earnings. If the company continues to grow its earnings the way it has, that could have a positive impact on its share price given how earnings per share influence long-term share prices. Remember, the price of a stock is also dependent on the perceived risk. Therefore investors must keep themselves informed about the risks involved before investing in any company. To know the 4 risks we have identified for Saunders International visit our risks dashboard for free. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
