GR Engineering lifts investor payout on strong year

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GR Engineering Services is building the new Bellevue gold mine plant in Western Australia

ASX-listed GR Engineering saw a near doubling of its mineral business activity in FY22, driving a 66% year-on-year increase in total revenue to $651.7 million, EBITDA of $55.8m and net profit of $34.7m. Its 10c-a-share final dividend took its full payout for the year to 17c compared with 12c in FY21.

“Based on GR Engineering’s order book, strong operating cashflows and balance sheet, the business is well placed to continue to deliver returns to its shareholders through FY23 and future years,” managing director Geoff Jones said.

GR’s mineral processing engineering, procurement and construction (EPC) business generated $496.7m of FY22 revenue, up 84.6% yoy, while its oil and gas arm contributed $155m, 25.6% higher than the previous year.

The company did most of its EPC work in Australia ($608.75m in FY22), with its Mipac mineral process controls business, acquired last year for $21.4m, contributing to offshore revenue of $42.9m ($21.9m the previous year).

“The FY22 year was an excellent year that was characterised by solid operational performance in challenging conditions given the COVID-19 pandemic. The result was pleasing given the strong performance in the prior year,” Jones said.

“GR Engineering successfully and safely achieved multiple project completions during the year and it is satisfying that these projects have further enhanced GR Engineering’s reputation for reliability and dependability. GR Engineering continues to progress work on its contracted pipeline of work with completions scheduled in FY23 and FY24.”

GR’s share price has surged more than 14% in the past month to $2.38, capitalising the company at about $385m.


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