To survive in today’s cut-throat business environment, you must have a foot in every door. For engineering design and construction company Aerison (ASX: AE1), that means expanding its services across Australia by offering eco-conscious solutions and varied infrastructural capabilities. In doing so, it is tapping into newer industries and, subsequently, more money.
Aerison has received several new projects, collectively valued at $100 million. Its projects pipeline continues to track over $5 billion, with its order book at $370 million. The book is primarily populated with works secured under contracts and a forward estimate of regular and ongoing works under master services agreements and preferred supplier arrangements.
Chief Executive Officer, Giuseppe Leone, said, “These contract awards are an important step in delivering our industry diversification strategy with an increasing focus on the critical mineral, agriculture and chemicals sectors. Looking ahead, our pipeline of identified opportunities continues to track steadily above $5 billion and supports a more diversified revenue stream to complement our current iron ore portfolio of projects.”
These awards include multiple contract awards for Aerison’s niche environmental engineering and construction services division, delivering Air Pollution Control (dust mitigation) solutions to many iron ore processing facilities in the Pilbara, Western Australia. Additionally, it will manufacture and install a raw materials conveyor system for Aussie fertiliser company CSBP Limited, part of Wesfarmers’s chemicals, energy and fertilisers portfolio.
They also include SMPE&I (structural, mechanical piping, electrical and installation) construction services in Western Australia for the agriculture sector and the early contractor involvement (ECI) process for the NeuRizer Urea Project (Australia’s first carbon-neutral urea producer) located in South Australia. This ECI will be delivered under the Company’s teaming agreement with an ASX-listed diversified surface and underground mining, bulk earthworks and civil construction company.
Finally, there’s the electrical infrastructure contract for the multi-phase Yuri Green Hydrogen Project in Pilbara, Western Australia.
Non-Executive Chairman, Bronwyn Barnes, added, “Aerison’s strength is its diversified customer base, and we continue to strategically broaden our exposure to exciting growth sectors in the Australian market. We are strongly positioned to capitalise on our growing opportunities pipeline over the next 6-12 months and will continue to pursue opportunities aligned with our core strategy.”
Diversification has remained a priority for Aerison. Its OFSC (federal safety commissioner) accreditation will broaden its pipeline to include government-funded infrastructure and defence contracts. Plus, it is making strides in the renewable energy sector, emphasising growth in battery energy storage systems and associated electrical control infrastructure.
Its services offer a good mix of sustainability and innovation. Evidently, there is demand for it.
In H1 2022, the Company recorded an EBITDA of $7.0m, up 33% on H1 2021. Its revenue amounted to $102 million as the number of projects stood at $3,400 million, representing an increase of 55% on 31 December 2021. Aerison is yet to release its full-year results.
In the coming months, the Company believes that more awards will support its growth targets for 2023.
Since December 23, its share price has remained relatively consistent at 17.50¢ per share.
Alinda is a Business Reporter for The Sentiment
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