News: Forge takes hit on write-down

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Forge Group Limited (ASX:FGE) shares have been hit hard since it resumed trading this morning, slashing the company’s value after it warned of a heavy loss this financial year.

 

Shares are down nearly 90 per cent, valuing the company at $33 million.

 

Forge has flagged a gross loss of up to $90 million for the year to June, saying it expects losses on two power station contracts.

 

As a result, the company has signalled a write-down of $127 million.

 

Forge has encountered heavy losses on the construction of the Diamantina power station in western Queensland and the West Angelas power station in Western Australia.

 

Forge delivered a net profit of $62.9 million in fiscal 2013.