WestStar Industrial Limited (ASX: WSI) has provided an update in relation to the recent contract awards.
The company said the new contracts will help maintain activity levels and add ~$24.5M in contracted revenue to WestStar’s order book.
The new awards of ~$11.2M, contract expansions of ~$7M and minor awards of ~$6.3M. WestStar were awarded through WSI’s wholly owned subsidiaries Alltype Engineering and SIMPEC.
The new project awards are:
- Award of ~$2.2M for a new metropolitan Tank Farm for Cleanaway. Works include supply and fabrication of tanks, piping and structural steel, with SMP and E&I installation works for a new waste processing facility train. Work has commenced immediately and expected to be completed in Q2FY23.
- Major subcontract scope of ~$5M for the supply and fabrication of pipeline components, skids, main line valve assembly with site Electrical & Instrumentation site installation works for Global Engineering and Construction. Works commenced immediately and are expected to be delivered during Q3FY23.
- Multiple new awards of ~$2.5M in aggregate contracted to works for destined for Main Roads WA for the supply and fabrication of road steel infrastructure components, including similar previous works being gantries and noise walls. Works commenced immediately and are expected to be delivered during Q2FY23.
- Award of ~$1.5M Limited Notice to Proceed for an Expansion Project for a major Construction Materials provider in Western Australia. This Limited Notice to Proceed has commenced and is expected to be delivered in Q1FY23.
In addition to the above, the Group received the following contract expansions and scope changes:
- Contract scope changes at the Lynas Rotary Kiln Project for additional mechanical, piping and electrical scope of work associated with project development ~$4M. Works commenced immediately and are expected to be delivered during Q2FY23.
- Contract extension and scope growth for acceleration and additional civil, mechanical, piping and electrical scope of work associated with fast-track delivery of critical gas infrastructure EPC works Northern Star Resources ~$2M. Works were ongoing and delivered during Q1FY23, with major milestones achieved in accordance with key shutdown and start up dates.
- Contract extension of ~$1M at the Tianqi Lithium Kwinana project for ongoing engineering support services expected to be delivered by Q1FY23.
In addition to the above project awards and contract expansions, WestStar has been awarded a number of smaller contracts with a range of new and existing clients The total combined value of these minor awards to the Group is ~$6.3M. The scope of these awards are expected to be completed during FY23 and are predominantly for SMP and E&I site installation, construction and maintenance services at various oil and gas and mining projects across Australia.
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