Andrew Ellison (left), Gary Reid, Jeff Brill and Richard Eden after the Centrals acquisition this year.

RDG secures Killarnee contracts

Resource Development Group has been assigned two construction contracts for Chevron’s Gorgon LNG project, following the demise of Killarnee Civil & Concrete Contractors.

RDG subsidiary Central Systems had been in negotiation for the two contracts prior to Killarnee entering voluntary administration at the start of September, with a reported value of $120 million.
The project will include construction of LNG tanks for CB&I Constructors and minor civil works for Leightons.

More than 70 personnel and assorted plant and equipment on Barrow Island have been transferred to Centrals, while Killarnee owner Paul Thompson will now lead a new Centrals oil and gas division.

Earlier this week it was reported that Killarnee creditors, who were owed around $14 million, had been warned they may not recieve anything from the winding-up of the company.

RDG managing director Jeff Brill said it was an important strategic outcome for the subsidiary.

“(Centrals) will be able to build on previous oil and gas contracts it has delivered and establish a footprint in the oil and gas sector, within one of its core capabilities,” he said.

“From a reputational point of view this is also a great outcome; Centrals has provided a solution to Chevron and the Gorgon project, CB&I, Leightons and importantly the personnel on Barrow Island.

“Diversification is a core strategy for RDG, within service offerings and sectors and this outcome is a clear signal of that strategy.”

RDG jumped 275 per cent in a single day in August when it announced its takeover of Centrals.

The acquisition was funded entirely by issuing of RDG shares to the five former Centrals shareholders, who would hold 78 per cent of the new company.

At the time of the merger, the company employed around 800 people.

RDG closed unchanged at 8 cents per share.

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Share Price

Closing price for the last 90 trading days
Source: Morningstar

Total Shareholder Return as at 31/01/18

1 year TSR5 year TSR
421stPura Vida Energy6%-40%
542ndAdvanced Braking Technology-14%-20%
662ndResource Development Group-34%-32%
750thAvita Medical-51%-13%
709 WA (and selected non WA) listed companies ranked by 1 year TSR relative to other companies with similar revenue
Source: Morningstar

Share Transactions

$10k Bought
$0 Bought
$0 Bought
Total value as at the date of the transaction
Source: Morningstar


88th↑Pura Vida Energy$9.4m
89th↓Resource Development Group$9.3m
90th↑Avita Medical$8.0m
91st↓Advanced Braking Technology$7.7m
234 listed industrial companies ranked by revenue.
Source: Morningstar

Remuneration from Resource Development Group

320thGary Reid$405k
512thRichard Eden$271k
669thAndrew Ellison$205k
Ranked by total remuneration from all listed WA companies

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