NBN contractor halts trading

Telco construction company Service Stream has entered a trading halt in order to “clarify a number of issues” in relation to Syntheo, its joint venture with Lend Lease.

Syntheo was forced to hand back the remainder of its NBN rollout work in the Northern Territory in March after being blamed by NBN Co for a downgrade in premises passed with fibre.

The contract was worth up to $341 million over four years.

The exit is expected to cost Service Stream a one-time charge of $3 million.

Service Stream told investors this morning the clarification of issues within its fixed communications segment, specifically Syntheo, could mean a revision to the company’s full year profit guidance.

Syntheo continues to hold rollout contracts for NBN Co in Western Australia, for two years and $174 million, and South Australia, for two years and worth $141 million. 

Syntheo is one of four NBN Co construction partners. 

Service Stream’s share price has been falling steadily since it gave back its Syntheo NT works to NBN Co in March. 

Following today’s trading halt Service Stream’s shares sat at $0.14. It hit a yearly high in January of $0.45.