Forge Group halted trading in its shares on Monday over possible losses on two power station contracts.

Forge said it was concerned about the possible poor performances of the Diamantina power station in Mt Isa, Queensland and Rio Tinto’s West Angelas Power station in Western Australia’s Pilbara.

The engineering group said it needed to clarify the position of the projects before providing the market with an update on its earnings guidance and outlook for the year to June 30, 2014.

The gas turbine projects were acquired when Forge acquired CTEC in January 2012.

The group’s shares ended last week at $4.18 and started 2013 at $4.93.