GR Engineering forecasts higher revenue

ASX-listed contractor GR Engineering Services has lifted its full-year revenue guidance by $60 million, noting a strong pipeline of ongoing and near-term projects.

GR has forecast record revenue of between $340 million and $360 million for the 2021 financial year, compared with its previous guidance of $280-300 million.

Managing director Geoff Jones said the Ascot-based business had also forecast improved earnings.

“The pipeline of ongoing and near term prospective projects remains solid and provides revenue and earnings visibility beyond FY21,” he said.

“The balance sheet has been strengthened and this has been underpinned by strong cash generation in the first half of FY21.”

GR's current projects include the provision of operations and maintenance to the Northern Endeavour FPSO under a one-year, $130 million federal government contract awarded late last month.

The business is due to release its first-half financial results on February 24.

Its share price closed up 9.3 per cent to trade at $1.29.