SRG Global Ltd (ASX: SRG) shares shot up more than 10% this morning, after the engineering company announced two new separate contracts worth $100 million. At the time of trading, the SRG Global share price is up 9.23% at 35.5 cents.
SRG Global provides asset services, mining services and construction operating across the entire asset lifecycle. It has a global portfolio of work, including The Emirates Tower in Dubai.
What were the new contract wins
SRG Global has secured contracts in Brisbane and Perth worth $100 million.
The first is with Multiplex to complete specialist facade work at the Oueen’s Wharf residential tower in Brisbane. The scope of works includes the design, supply and installation of engineered curtain wall facades. The work is expected to be completed by March 2023.
The second contract, with D&C Corporation, is to complete structure works at the Elizabeth Quay West development in the Perth CBD. This is SRG Global’s fourth major contract for the Elizabeth Quay waterfront precinct. The project is expected to start immediately and end around June 2022.
Other recent contract wins
Only last week, SRG Global announced it had won three contracts worth $55 million. These projects include work on the NSW Government’s New England Highway upgrade, a 20ML water tank for the Water Corporation in Karratha, and remedial works at Paradise Dam for Sunwater and CPB Contractors.
Overall, the company has secured contracts worth a total of $550 million since the start of the first half of FY21.
SRG Global managing director David Macgeorge is pleased with the progress, saying:
We continue to secure significant contracts, on some of the most important developments across Australia, demonstrating the value of our long-term, trusted relationships with our key clients.
These contract awards are also evidence of our strong technical expertise and 40-year track record of delivering specialist building projects.
With $550 million of new contract wins since July, many of them long-term, SRG Global is in a period of significant momentum that we anticipate extending well into calendar 2021. Importantly, the contract wins are being achieved across a diversity of sectors and geographies, positioning SRG Global well for long-term, sustainable growth.
About the SRG Global share price in 2020
The SRG Global share price started the year at 40 cents. It dropped dramatically to 18 cents in the COVID-19 crash in March before recovering to today’s level of 35.5 cents. The company commands a market cap of $143 million.
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More reading
- SRG Global (ASX:SRG) share price up 5% on new contract wins
Motley Fool contributor Eddy Sunarto has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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