Total
0
Shares
Market Herald logo

Subscribe

Be the first with the news that moves the market
  • Valmec has received new contracts across its service and construction segments totalling $43 million
  • These contracts have been awarded by Arrow Energy, AGIG, Water Corporation & Incitec Pivot and more
  • Valmec expects a revenue of up to $140 million during FY20
  • It also expects to deliver an EBITDA up to $10.1 million

Valmec has received new contracts across its service and construction segments totalling $43 million.

These contracts have been awarded by Arrow Energy, AGIG, Water Corporation & Incitec Pivot on various work fronts across Australia.

It has also secured contracts with Tier 1 gas and resource producers in Western Australia and Queensland.

Entering Financial Year 2020, Valmec received its strongest order book of $80 million and with these new contracts, the company anticipates a higher earnings growth.

Valmec believes it can achieve a revenue between $130 million and $140 million during FY20. It also expects to deliver an earnings before interest, tax, depreciation and amortisation (EBITDA) between $9.1 million and $10.1 million.

This range represents a forecast year-on-year revenue growth of 22.7 per cent and an EBITDA growth of 21 per cent for FY20

Managing Director Steve Dropulich is very pleased to have been awarded these contracts.

“It is also pleasing to see new contracts secured with a number of our existing customers as well as contracts that introduce new customers to our portfolio,” he said.

“This demonstrates both the strength of our existing relationships and Valmec’s ability to diversify and grow its presence within the greater service and construction sectors,” Steve added.

Valmec is an Australian energy and infrastructure services group that provides equipment, construction, maintenance, commissioning and integrity maintenance services to the oil and gas, resources, energy and infrastructure sectors.

“With strengthening market conditions in these sectors, Valmec will continue to develop its works pipeline for 2021 and beyond,” Steve said.

Valmec has gained 8.47 per cent on the ASX today and is currently selling shares at 32¢ apiece at 3:07 pm AEST.

VMX by the numbers
More From The Market Herald
Kleos Space (ASX:KSS) - CEO, Andrew Bowyer

" Kleos Space (ASX:KSS) to build and launch Observer Mission

Kleos Space (KSS) has signed new contracts with satellite builder Innovative Solutions in Space (ISISPACE) and global launch services provider, Spaceflight.
Amaero International (ASX:3DA) - CEO, Barrie Finnin

" Amaero International (ASX:3DA) to make rocket motor parts for Gilmour Space

Amaero International (3DA) has secured a heads of agreement (HoA) with Gilmour Space Technologies.

" DGL Group (ASX:DGL) to buy Shackell for $8.9m

Specialist chemicals business DGL Group (DGL) has agreed to purchase Shackell Transport for $8.9 million.

" CIM propose $840M 2019 profits with digital shift

CIMIC Group Executive Chairman expects a 2019 performance of $790m  million $840 million.