Forge to write down profit on WASP project by up to $28m FORGE Group expects to book an additional $23 million to $28 million profit writedown on the West Angelas Power Station (WAPS) project. In a statement to the Australian Securities Exchange, Forge said it had identified previously unplanned scope and subsequent unplanned and extended delivery durations which are forecast to result in additional costs to complete. The extra costs include further engineering, construction and site establishment costs for the additional delivery schedule. Forge Group managing director and chief executive officer David Simpson said he regretted having to inform shareholders of the additional profit deterioration. The board of Forge also said it expects to pay no dividends in fiscal 2014. Last week Forge shares were placed in a trading halt ahead of today's financial update. The news comes just weeks after it was revealed investment manager BlackRock had taken a stake in the mining services company after it secured more work at Gina Rinehart's Roy Hill iron ore mine in Western Australia. Forge shares soared over 54 per cent after it announced it had received formal notification to proceed with phase three of construction of the $1.47 billion processing facility at Roy Hill. Forge said today that its financiers had agreed to continue to provide overall support to the company through existing facilities, while new bonding facilities have been provided by Forge's surety providers to fully bond phase three at Roy Hill. Forge said its conversations with other key stakeholders were ongoing. "The ongoing and expected support provided by our financiers and other key stakeholders gives Forge Group the confidence to continue to trade on a business as usual basis and deliver on our current work in hand," Mr Simpson said. The mining services company also noted it had delivered $10 million in cost savings as part of operational initiatives across the organisation, with a further $5 million to be implemented before the end of fiscal 2014. "In addition, there are a further $5 million in one-off items expected to be achieved in FY2014," Forge said. Mr Simpson said market conditions remained difficult, with increased competition and a general tightening of the resources market. However, he said Forge had a a contracted order book exceeding $1.5 billion, of which approximately $600 million is expected to be delivered in fiscal 2014. "Our strategy of diversification geographically and into Asset Management remains a key focus for the management team," he said.