SRG Global backed by billion dollar contract pipeline
Mining News Pro - Mining services company SRG Global has upped its 2021 financial year guidance, having won $550 million worth of contracts since July 1.
This puts the company in a record position, with $1 billion worth of work booked as of November 30, representing a 41.5 per cent increase since June 30.
SRG Global has revised its earnings before interest, taxes, depreciation and amortisation (EBITDA) guidance for the financial year to between $42 and $45 million, up from $38 to $42 million.
Managing director David Macgeorge said the increased guidance represents the company’s strong position and positive outlook for the 2021 financial year, with significant new contract wins.
“I am pleased to increase our full year EBITDA guidance to $42 million to $45 million which is a significant increase on the previous year’s performance (of $20.5 million in underlying EBITDA),” he said.
“The improved financial performance and guidance is underpinned by our recent contract wins, record work in hand position and high level of annuity earnings. The outlook for SRG remains positive given the company’s exposure to diverse sectors and geographies, quality commodities, a Tier 1 client base and growing levels of construction and maintenance expenditure.
“This puts the company in a very strong position to continue building momentum into 2021, providing the confidence for our upgraded guidance.”
SRG Global’s financial year 2021 contracts include production, drill and blast for Fortescue Metals Group in Western Australia’s Pilbara region, specialist Geotech services for Bellevue Gold, Norton Goldfields and Silver Lake Resources in the Western Australia’s Goldfields region, and an eight-year asset services contract with South32 at the Worsley refinery south of Perth.
The company has also won contracts in the oil and gas, construction, transport, water, building and renewables industries, representing its strategy to win contracts across a diverse range of industries.