The SRG Global Ltd (ASX: SRG) share price closed 10% higher yesterday to $0.385 following the announcement of a major new construction package award for a project in Perth.
One The Esplanade project
Yesterday, SRG Global announced it has secured a $72 million integrated construction package for the One The Esplanade project at Elizabeth Quay, in Perth's central business district.
The new construction package was awarded to SRG Global by Multiplex. It incorporates the complete concrete structure as well as the design, supply and installation of engineered curtain wall facade for the new building.
Upon completion, One The Esplanade will comprise 29 levels and 54,000 square metres of office floor space, and be able to accommodate approximately 3,000 people. The new deal continues the successful long-term relationship that SRG Global has had with Multiplex.
SRG Global commented that the project is a premium commercial development and upon completion, is set to become the new headquarters for Chevron Australia. SRG added that contract works for the new project are expected to commence in May 2020 with a total duration of approximately two years.
Commenting on this new package award, SRG Global managing director David Macgeorge said:
"We look forward to working closely with Multiplex to deliver this significant project. Elizabeth Quay is an iconic development precinct with a multi-billion-dollar pipeline of work and SRG Global is proud to continue our involvement in the ongoing development of Elizabeth Quay."
Previous financial results announcement
Yesterday's announcement followed SRG Global's release of its 1H20 financial results earlier this week on Tuesday.
To recap these results, SRG Global recorded revenue of $267.1 million for the six months to 31 December 2019. This was a 12% increase on the $238.5 million achieved in the prior corresponding period (pcp) of 1H19.
The company attributed this increase in revenue to the commencement of new contract wins in its Asset Services Segment. In addition, the company gained significant project revenue on Civil projects, delivered by strong performance in this segment.
SRG Global commented that it believes it is well-positioned for solid, sustainable growth in FY21 and beyond. This strong position will be driven by significant work in hand totalling $737 million and a growing recurring revenue base. In addition, the company has the potential to capitalise on an opportunity pipeline that amounts to $5.7 billion.
