Valmec, WestStar boost order books

11/09/2019 - 15:09

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Perth-based energy services group Valmec says it expects continued revenue and earnings growth after securing $43 million worth of contracts.

Valmec, WestStar boost order books
Steve Dropulich says he is pleased with contracts secured with both existing and new customers.

Perth-based energy services group Valmec says it expects continued revenue and earnings growth after securing $43 million worth of contracts.

Valmec has been awarded gas and infrastructure contracts with Arrow Energy, Australian Gas Infrastructure Group, Water Corporation and Incitec Pivot, and asset services contracts with tier one gas and resource producers in Western Australia and Queensland.

In August, Valmec announced record underlying earnings of $8.06 million, which had surged 65 per cent, and increased revenue of $110 million (up 6.3 per cent), along with a record order book of $80 million.

The company said it predicted continued growth in 2020, with revenue expected to reach between $130 million and $140 million, and underlying earnings as high as $10.1 million.

Valmec managing director Steve Dropulich said he was pleased with contracts secured with both existing and new customers.

“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,” he said.

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

“Direct client relationships with tier one energy and resources clients will continue to enhance a pipeline of strong construction and service opportunities currently valued at over $595 million, comprising gas and water infrastructure works, new renewable energy and power generation developments, as well as servicing its expanding maintenance and integrity services markets.”

Meanwhile, Perth-based WestStar Industrial said its subsidiary, SIMPEC, has been awarded a $5 million power station contract from Energy Power Systems Australia.

Under the contract, SIMPEC will partially supply, install, test and commission the 25-megawatt diesel power generation facilities for Fortescue Metals Group's Eliwana mine and rail project in the Pilbara.

The contract starts this month and will finish in July 2020.

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