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Downer EDI Ltd (ASX:DOW) has posted a first half net loss, and also, launched a $279 million capital raising to inject funds into its troubled Waratah train project in New South Wales.
In the six months to 31 December 2010, the engineering company booked a net loss of $103.8 million, from a profit of $87 million a year before. Revenue rose 18 per cent to $3.3 billion.
Last month Downer advised it would take a $250 million provision related to the Waratah train project, bringing the total changes on the contract to $440 million.
Under the capital raising Downer is undertaking a fully underwritten 1 for 4 accelerated renounceable entitlement offer to all eligible shareholders.
The offer price is $3.25, representing a 17.1 per cent discount to Downer’s last closing price of $3.92.
No interim dividend has been declared for the half year.
In the 2010 financial year Downer EDI recorded a net profit of just over $3 million.
