Valmec wins work with Origin

Shares in engineering and construction firm Valmec surged on news it was awarded a $5.3 million contract to provide services to the Origin Energy-operated Talinga Gas processing facility in Queensland.

It is the first gas services-related contract Valmec has won since it acquired the Australian subsidiary of US oil and gas services company Exterran in December last year.

The scope of work involves maintenance and overhaul services for the compression equipment at the facility, which forms part of the Australia Pacific LNG project, with work to begin immediately.

Valmec managing director Steve Dropulich said the work would be carried out by the company’s Queensland site-based team and Dalby workshop services team.

Work is expected to be completed by July.

Last week, Valmec reported a 1,128 per cent increase in half-year profit to $3.8 million, and a 12 per cent rise in revenue to $26.5 million.

Valmec shares were 12.5 per cent higher at 22.5 cents per share at 10:50am.