Western Australian mining and resources services company SRG Global has taken contract wins in its current financial year to about A$776 million with $125m of new work with Rio Tinto, BHP, Origin Energy and Snowy Hydro.
The ASX-listed company won a total of $1.2 billion of contracts in FY23.
Its latest contract wins include a six-year asset integrity and rope access services deal with Rio Tinto at the Yarwun alumina refinery in Queensland; an asset integrity services contract extension with Origin Energy in Queensland; a structural design and construct contract at the Tumut 1 power station in New South Wales; and an initial infrastructure contract BHP Iron Ore at Newman in WA.
SRG says it has a circa-$6.5 billion tenders and pipeline target.
It recently upgraded its FY24 EBITDA guidance to $95-100 million.
“SRG’s recent results and FY24 outlook provide strong evidence that SRG is delivering on its strategy and is a lower risk investment when compared to many construction and mining service peers given the recurring nature of a large portion of its revenue [about 80%],” Perth stockbroker Shaw and Partners said this week.
“We additionally expect the macro-outlook to remain strong, across infrastructure, asset services, mining and select construction.
“We forecast SRG to deliver EBITDA growth of 22.7% in FY24 versus comparable companies which are expected to deliver growth of around 17.3%.
“Despite this, SRG trades at an FY24 EV/EBITDA multiple of 4.8x versus peers at around 6.5x.”
