AusGroup has recorded a 37.5% fall in net profit attributable to equity holders for the three months ending March 31 (3Q FY2010) to A$2.6 million ($3.3 million).

Revenue for 3Q decreased by 15.8% to A$83.8 million mainly due to the continued impact of lower activity levels in the group’s manufacturing and fabrication segments in Australia and Singapore and the construction segment in Australia. Delays in projects by some clients further contributed to the lower revenues registered during the quarter.

The acquisition of Modern Access Services (MAS) was completed in Q4 FY2009. MAS registered revenue of A$15.8 million for 3Q FY2010compared with A$14 million for 2Q FY2010 and A$9.9 million for 1Q FY2010.

As at March 31, AusGroup has an order book of A$456 million and cash and cash equivalents of A$30.5 million.

As for the outlook of the Australian oil and gas markets, the group believes that over the next 12 months, demand for its Australian-based services will improve, driven largely by Western Australian LNG and oil and gas project developments. The group expects margins to remain at normal levels driven by the strong demand outlook on the back of Western Australian LNG.

The AusGroup also says it continues to see a steady but slow improvement in the Western Australian mineral resources sector but the expected recovery is taking longer than previously anticipated.