Valmec Secures $22 Million Contract With Jemena For Atlas Gas Project, Boosting The Order Book To $80m

  • Jan 23, 2019 AEDT
  • Team Kalkine
Valmec Secures $22 Million Contract With Jemena For Atlas Gas Project, Boosting The Order Book To $80m

On 23 January 2019, Valmec Limited (ASX: VMX) has announced that they have secured a contract with Jemena for facility construction works at its Atlas gas Pipeline Project, South West Queensland.

Valmec Limited comes under the energy sector. The company provides its specialized package equipment, construction, and other related services to the oil and gas, and other sectors relating to it. 

The contract is going to be delivered on a turnkey basis and is valued at circa $22 million. Works under the contract will start immediately, with the project due for completion later in 2019. This contract will support the Valmec’s relationship with Jemena after the recent successful completion of the NGP Mt Isa Compression facility project.

During the last month, the company has secured over $35 million of new energy and infrastructure contracts across Australia, including the Atlas Gas project. Due to that the company’s order book is boosted to circa $80 million.

As stated by Valmec’s Managing Director Mr. Steve Dropulich, that they are grateful to get this strategic project for Jemena and its Project partner Senex Energy Limited on their Atlas Gas Project. Valmec is very keen to develop their strong relationship with Jemena. The company is very excited about their developing project pipeline and continued expansion of their service portfolio as they are looking forward to boosting their order book with high quality earning during FY19 and beyond.

The contract award act like a testament to the company’s specialized range of execution capabilities and industry experience, due to this the company will become a benchmark service provider for gas compression and processing infrastructure.

The company is in the position to capitalize on the strengthening gas thematic, currently over $176 million of new work in the tender submission phase, which consists part of a total project pipeline of over $436 million.

On 28 December 2019, the company disclosed to the market that one of its directors, Mr. Steve Dropulich who had an indirect interest in the Company, had acquired 50,000 fully paid ordinary shares via On-market Purchase for the total consideration of $13,000. Jant Nominees Pty Ltd < Glen Iris Super Food A/C > are the registered holder for the benefit of Mr. Steve Dropulich. Now, the number of securities held by Jant Nominees Pty Ltd < Glen Iris Super Food A/C > are 1,506,259 shares.

FY18 Financial Performance: The company’s revenue for the year stood at $103.2 million in FY18, (over the prior year which was $72.9 million). The total comprehensive income for the year was 3.77 million, (over the prior year which was $1.55 million). On Balance Sheet front, Net Assets for the year stood at $31.49 million in FY18, (over the prior year which was $17.20). As at 30 June 2018, the company had cash and cash equivalent of $2.74 million (over the prior year which was $2.28 million).

Stock performance: The shares of Valmec Ltd closed the day’s session at A$0.250 (23 January 2019), up by 6.383%. The company has 125.72 million outstanding shares with the market cap of circa $29.54 Million. The stock has delivered the negative return of 27.69% over the past six months. During the last one month, VMX delivered the positive return of 2.17%.


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