Leading integrated services provider AusGroup Limited (SGX: 5GJ) announced today that recent contract awards and extensions for its clients within the energy and industrial sectors amount to a combined value of approximately AU$100 million since its most recent market update at 30 September 2015.
AusGroup subsidiary MAS Australasia Pty Ltd (‘MAS’), an established provider of scaffolding and associated services, received a further contract extension with CB&I Kentz Joint Venture. MAS will continue to provide scaffold services, scaffold design and engineering for a further six months to 30 June 2016.
In addition, AusGroup subsidiary AGC has been awarded a number of general and campaign maintenance contracts under its existing Multi-Discipline Services Agreement with Woodside Energy, including the management, supervision and craft labour required for work associated with the Karratha Life Extension Program. These contracts will conclude by 31 March 2016.
Following the signing of a Brownfield Maintenance Services contract with Chevron Australia Pty Ltd (“Chevron”), AGC has commenced mobilisation of maintenance personnel to provide support services for Chevron’s Western Australian-based natural gas assets. We expect these mobilisations to continue over the course of 2016, including teams to assist with the planning and execution of maintenance support.
Finally, AGC has also been awarded a three-year refractory contract with OneSteel for site-wide management, planning and execution, preventative and reactive maintenance services. The work will be delivered at the steel manufacturer’s Whyalla site.
AusGroup Managing Director and Chief Executive Officer of the Engineering Services unit, Gerard Hutchinson, said: “These extensions and awards contribute to the Company’s recurring revenue stream in line with our strategy of providing stability and continuity in a changing market. We are confident in our ability to continue to win and execute work of this nature, particularly in the access and maintenance sector. Our agile approach and experience with clients across the energy, resources and mining sectors allows us to provide high quality, competitive and cost effective solutions.”