SRG Global’s strategic expansion into renewable energy sector helps yield major contracts

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By Colin Hay - 
SRG Global ASX $125 million new contracts

Diversified industrial services company SRG Global’s (ASX: SRG) focus on expanding into the renewable energy area is paying off, with the “booming” sector helping the company land $125 million in new contracts.

Renewable energy developments in Australia have been boosted by a recent surge in government backing and are expected to continue to do so with millions of dollars in new incentives announced in the recent federal budget.

Following a run of success earlier in the year, SRG has revealed to the ASX that it has again been awarded multiple contracts with existing clients in the resources and energy sectors across Australia.

Established relationships

Managing Director David Macgeorge said SRG had secured the diverse range of contracts across Australia through established relationships with Tier 1 clients.

“I am particularly pleased that the combined offering of our up-front capabilities of our asset care business combined with the back-end execution of our asset maintenance team continues to gain traction with our clients,” he said.

“SRG Global continues to go from strength to strength, underpinned by our strong growth profile and recurring earnings base approaching 80% of our overall earnings, which is in line with our long-term strategy.”

Origin Energy work

The contract wins and extensions include an asset integrity services project extension with Origin Energy and its upstream infrastructure network across Queensland.

Already underway, the contract is targeted for completion next year.

SRG has also landed a specialist structural design and construct contract to replace the existing roof support, walkway and water shedding system at the Tumut 1 Power Station site for Snowy Hydro in New South Wales.

The contract is expected to be completed within 18 months.

Rio Tinto, BHP deals

On the resources front, SRG has been awarded a six-year term contract for asset integrity and rope access services with Rio Tinto at their Yarwun refinery in Gladstone, Queensland.

The program is scheduled to commence this month and is expected to be completed in 2030.

SRG has also landed an initial 24-month infrastructure contract for the design and construction of concrete tanks for BHP Iron Ore in Newman, Western Australia.

Sustained run of success

The new wins follow similar successes for SRG earlier in the year.

In mid-April, the company informed shareholders it had been awarded $150m in new business.

The company’s asset integrity and reliability services term contracts featured work with BP at the world-class Kwinana energy hub in WA.

Other wins included an infrastructure contract for the construction of a tailings dam at the Pilgangoora mining operation with Pilbara Minerals in WA and a regional road diversion construction contract for Genesis Minerals within their Leonora operation in the Goldfields region of WA.