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Highlights
- WestStar has secured new contracts and awards worth AU$13 million through its wholly owned subsidiaries SIMPEC and Alltype Engineering.
- The recent contracts and previously announced awards and contract expansions in June summed up to AU$28 million.
- WestStar believes to be in a strong position for further awards in the future.
WestStar Industrial Limited (ASX:WSI), an industrial services company based in Australia, has provided an upbeat update on new contract awards. The company’s wholly owned subsidiaries, SIMPEC and Alltype Engineering, have secured new awards worth AU$13 million.
WestStar is focused on oil and gas, resources, water, and infrastructure sectors. It holds the potential to tender, implement and deliver specialised engineering and construction solutions in these sectors.
SIMPEC – It offers high-quality construction and engineering services. It has received awards totalling nearly AU$3 million for new clients and different existing projects.
Alltype Engineering – Alltype provides complete project solutions such as installation, construction, and maintenance services by utilising its fabrication capability. It received new contracts and awards totalling nearly AU$10 million from clients across the mining, oil and gas, energy, infrastructure, and industrial sectors. In June, Alltype received new awards and contract expansions worth AU$15 million.
The new contract along with existing contracts contributed to the consolidated group value of total contracted awards to AU$237 million for the financial year enabling the firm to build on the success of FY2022 in FY2023.
Total contracts value worth AU$28 million
WestStar already owns considerable works under contract and in different stages of completion for delivery in FY23. The recently awarded contracts summed up to AU$28 million. It includes the AU$15 million of new awards and contracts expansion announced in June.
Because of its capacity to deliver works for several major flagship projects (Lynas, Iron Bridge Wet Plant, etc.), WestStar has witnessed rapid tendering activities in the battery mineral sector (lithium, nickel, and rare earth producers) of Western Australia.
Outlook
WestStar remains to improve its position operationally and financially. The company has continued its strategy to gain access to new geographies and industry segments through the evaluation of synergistic mergers and acquisitions. It maintains full balance sheet flexibility and nil debt. It implements its growth strategy by accessing government export bonding through Export Finance Australia.
There is a huge pipeline of opportunities for WestStar, and it believes to be in a strong position for further awards to be made soon.
Stock information: WestStar has a market capitalisation of AU$17.72 million. At the time of writing this article (Tue 23 Aug, 10:39 AM AEST), shares of the company were trading at AU$0.170 with a gain of 6.250%.
