GR Engineering records $551m revenue

GR Engineering Services has reported $551.4 million in revenue for the 2022-23 financial year, down from the $651.7 million recorded in the previous period.

The Ascot-based company today released its FY23 financial results on the ASX, ending the year with a cash balance of $86 million and a $39.7 million profit before tax.

GR Engineering’s FY23 revenue, despite lower than recorded in FY22, was higher than the revenue guidance of $500 million to $530 million provided in November.

In its ASX statement, GR Engineering said its EBITDA margin percentage increased by 8 per cent, ending the year with $44.4 million.

“As previously disclosed in its half year results, GR Engineering’s EBITDA margin percentage in the first half of FY23 was impacted by its Tasmanian projects,” its statement said.

“These Tasmanian projects have now been completed.”

Completed projects in FY23 included the Thunderbox 6 Mtpa expansion, the Abra Base Metals project, and the Mt Ida and Norseman gold projects, according to GR Engineering’s ASX statement.

GR Engineering managing director Tony Patrizi said the company had achieved major project completions in FY23.

“The safe and successful delivery of these projects reinforces GR Engineering’s reputation as a proven and reliable process engineering design and construction contractor,” he said.

“GR Engineering’s contracted and near term pipeline across the group is strong and is continuing to grow.

“Based on the strong pipeline and the high levels of study work, GR Engineering’s medium to long term visibility for project work remains high.”

Mr Patrizi said GR Engineering recorded a strong cash balance of $86 million after paying out $30.7 million in fully franked dividends to shareholders.

GR Engineering's investor presentation shows the company held the $86 million cash balance with negligible external bank debt.

The company’s ongoing projects include BHP’s West Musgrave project, Kimberley Mineral Sands joint venture’s Thunderbird project in the Dampier Peninsula, the Bellevue Gold project, and IGO’s Cosmos Nickel Operations.

GR Engineering shares were up 3.41 per cent trading at $2.28 as of 3.56pm AEST.