Resources fires SCEE to record year

Major Australian electrical engineering contractor SCEE Group believes it can maintain FY23 revenue at last year’s record levels, and improve earnings, as large resources contracts that underpinned its strong FY22 results tail off.

SCEE booked a A$15.3 million net profit for FY22, up from $13.8m in FY21, and EBITDA of $35.3m (up 19.3% year-on-year) on 49.5% higher revenue for the year of $553.3m, “driven by a significant increase in activity in the resources sector and the inclusion of a full year of revenue from the Trivantage businesses which were acquired in December 2020”.

“Resources revenue for the year was $282.5m, more than double the $129.5m in the prior year, making resources the largest sector for the first time since FY18,” SCEE said.

“This growth was primarily driven by high levels of activity at the MARBL JV Kemerton lithium plant, Rio Tinto Gudai-Darri and the BHP Villages Security projects and also included contributions from the Rio Tinto Tom Price battery energy storage facility, general works for Rio Tinto and BHP and under framework agreements at the Sino Iron and Newmont Boddington mine sites.

“Work will complete on key FY22 projects in the first half of FY23 and there is a long tail of smaller opportunities in the sector across many commodities.”

SCEE’s infrastructure business segment generated $103.9m revenue in FY22 ($76m in FY21) but dominated its record $565m order book at the end of June this year on the back of SCEE winning large Western Sydney International Airport contracts.

“The project will run for several years and has potential for further growth, plus other packages at the airport, as well as general commercial and infrastructure opportunities as the Western Sydney Aerotropolis region develops,” the company said.

“The Sydney Metro Pitt Street Station project is ongoing with further opportunities presenting on the Sydney Metro program. The broader infrastructure pipeline remains strong with record levels of infrastructure spend sanctioned across Australia.”

SCEE commercial segment revenue for FY22 was $166.9m versus $164.7m in FY21.

The company’s final 4c-a-share FY22 dividend took the fully franked payout for the year to 5c/sh.

Its share price is up about 13% in the past month to 74c, capitalising SCEE at $190m.


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