GenusPlus bags another mining giant with $30 million contract

The stars are very much aligned when it comes to the relationship between power and communications infrastructure provider GenusPlus (ASX: GNP) and the ASX mining giants. After securing a $30 million powerline contract with Fortescue Metal Group (ASX: FMG) in December 2021 and $15 million substation contract with Fortescue Future Industries (FFI) around the same time a year after, the WA-based company has successfully secured another project under its belt, this time a $30 million worth of contract with Rio Tinto (ASX: RIO).

Primarily servicing energy, mining, and telecommunications companies, GenusPlus will provide RIO with design, supply and installation work of 33kV overhead lines, installation and termination of buried cables at road crossings and substations, as well as supply and installation of pole top power transformers at the Western Range project in the Pilbara region of WA, approximately 15 km west of Paraburdoo. 

The contract for design, supply and installation of the 33kV overhead lines will commence immediately and is estimated to be completed in early 2025, with Genus’ project workforce comprising approximately 30 personnel. 

Commenting on the partnership with Rio Tinto, GenusPlus Group’s Managing Director David Riches said, “We are delighted to secure the Western Range Contract and continue to build on our long and successful relationship with Rio Tinto. We look forward to completing the works safely and on time. This contract award is important as we convert our strong tender pipeline to orderbook heading into FY2024.”

GenusPlus covers the full project lifecycle from design and engineering to commissioning, maintenance and decommissioning of power & communications infrastructure assets. The Company primarily focuses on three major sectors of infrastructure, industrial services, and communications across Australia, delivering 30.5% of the Group revenue from East Coast operations. 

In addition, the Company also specialises in building and maintaining electrical transmission and distribution networks, substations and battery systems, also delivering scalable fixed and wireless communication network solutions.

The Rio Tinto deal will strengthen the Company’s presence in the West Coast.  

For the Half Year ended 31 December 2022, Genius Plus reported revenue of $225m which represented a 4% increase on the previous year. It translated to statutory NPAT of $6.4m which was a 30% decline on the previous year but a 45% increase on the Half Year ended 30 June 2022. 

GenusPlus anticipates a few busy months ahead to close out FY23 which will carry into FY24 with an order book valued at $413m, of which the Company expects $135m of project work and $80m recurring work to be captured within FY23. 

Further work may still be secured with GenusPlus having tendered for more than $1.4 billion worth of work, up from the $848m of potential pipeline work tendered for as of June 2022.