Saunders International (ASX:SND) strengthens NSW foothold, wins $17M in infra projects

Multi-disciplinary engineering and construction company Saunders International Limited (ASX:SND) has secured AU$17 million in new infrastructure projects. The work concerns three construction projects in the New South Wales region of Australia.

The development is another strong leading indicator of the business momentum. During the December quarter of 2021, the Company secured a defence contract valued at AU$165 million from Crowley to design and build 11 jet fuel tanks in the Darwin region.

New project wins boost Saunders’ financial stance 

The new infrastructure projects will contribute to the revenue and earnings of the Company from the third quarter of FY22 to FY23.

Saunders has also won a preferred contractor status for circa AU$11 million worth of new infrastructure projects. The final contractual negotiations are currently in progress.

Commenting on the new projects, Saunders’ Chief Executive Officer Mr Mark Benson said, “Saunders has a strong track record of successfully delivering projects to the public and private infrastructure sector in NSW. These project wins highlight our capabilities in delivering projects to this sector and strengthens our relationships with key customers. These wins further validate our strategy to target the Federal and NSW Governments’ infrastructure spend. With more bridge construction opportunities coming to market through the ‘NSW Replacing Country Bridge’ program, we are confident Saunders will continue its’ growth in this sector.”

Related read: 70 years of trust: Will Saunders continue its success story in 2022?

Project details

The new infrastructure projects include the construction of two bridges for the local government body and the manufacturing and delivery of bridge girders for four bridges.

Image source: Company website

The AU$17 million projects include:

1. The design and construction of a 52m-long bridge in the Narrabri region.
2. In the Port Macquarie region, Saunders will construct a four-span, 45m-long bridge. The construction of the approach road is also in the project scope.
3. The construction and delivery of 166 Super T bridge girders for four bridges as a part of the Sydney Gateway Project. The project has considerable significance as it will provide a connection from the St Peters interchange to the domestic and international terminals at Sydney Airport.  

Related read: A quick glance at Saunders International’s 2021 projects

As of 31 January 2022, Saunders’ order book stands at a record level of AU$223 million. The size of the work in hand is expected to underpin the Group’s performance for the remainder of FY22 and FY23.

Saunders is eyeing to tap further opportunities arising from significantly increasing public and private investment in infrastructure.

Share price movement

SND shares traded at AU$1 on 8 March 2022. The Company has a market cap of AU$117.4 million.

Related read: Here’s how Saunders International (ASX:SND) is tapping Australian defence space